Correlation Between DMY Squared and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both DMY Squared and Deutsche Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DMY Squared and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between dMY Squared Technology and Deutsche Bank AG, you can compare the effects of market volatilities on DMY Squared and Deutsche Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in DMY Squared with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of DMY Squared and Deutsche Bank.
Diversification Opportunities for DMY Squared and Deutsche Bank
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DMY and Deutsche is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding dMY Squared Technology and Deutsche Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank AG and DMY Squared is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on dMY Squared Technology are associated (or correlated) with Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank AG has no effect on the direction of DMY Squared i.e., DMY Squared and Deutsche Bank go up and down completely randomly.
Pair Corralation between DMY Squared and Deutsche Bank
Given the investment horizon of 90 days DMY Squared is expected to generate 59.95 times less return on investment than Deutsche Bank. But when comparing it to its historical volatility, dMY Squared Technology is 5.25 times less risky than Deutsche Bank. It trades about 0.01 of its potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,223 in Deutsche Bank AG on August 27, 2024 and sell it today you would earn a total of 397.00 from holding Deutsche Bank AG or generate 32.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
dMY Squared Technology vs. Deutsche Bank AG
Performance |
| Timeline |
| dMY Squared Technology |
| Deutsche Bank AG |
DMY Squared and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DMY Squared and Deutsche Bank
The main advantage of trading using opposite DMY Squared and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DMY Squared position performs unexpectedly, Deutsche Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| DMY Squared vs. PowerUp Acquisition Corp | DMY Squared vs. Aurora Innovation | DMY Squared vs. HUMANA INC | DMY Squared vs. Aquagold International |
| Deutsche Bank vs. Banco Bradesco SA | Deutsche Bank vs. Itau Unibanco Banco | Deutsche Bank vs. Banco Santander Brasil | Deutsche Bank vs. Western Alliance Bancorporation |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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