Correlation Between First Majestic and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both First Majestic 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 First Majestic and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Majestic Silver and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on First Majestic 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 First Majestic with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Deutsche Bank.
Diversification Opportunities for First Majestic and Deutsche Bank
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Deutsche is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien and First Majestic 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 First Majestic Silver 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 Aktien has no effect on the direction of First Majestic i.e., First Majestic and Deutsche Bank go up and down completely randomly.
Pair Corralation between First Majestic and Deutsche Bank
Assuming the 90 days horizon First Majestic Silver is expected to generate 0.46 times more return on investment than Deutsche Bank. However, First Majestic Silver is 2.17 times less risky than Deutsche Bank. It trades about -0.06 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about -0.09 per unit of risk. If you would invest 49,304 in First Majestic Silver on August 28, 2024 and sell it today you would lose (448.00) from holding First Majestic Silver or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| First Majestic Silver |
| Deutsche Bank Aktien |
First Majestic and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and Deutsche Bank
The main advantage of trading using opposite First Majestic and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic 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.| First Majestic vs. Visa Inc | First Majestic vs. Desarrolladora Homex SAB | First Majestic vs. CMR SAB de | First Majestic vs. The Select Sector |
| Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Glencore plc | Deutsche Bank vs. iShares Trust | Deutsche Bank vs. US Bancorp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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