Correlation Between Livetech and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Livetech 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 Livetech and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Livetech da Bahia and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Livetech 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 Livetech with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Livetech and Deutsche Bank.
Diversification Opportunities for Livetech and Deutsche Bank
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Livetech and Deutsche is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Livetech da Bahia 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 Livetech 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 Livetech da Bahia 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 Livetech i.e., Livetech and Deutsche Bank go up and down completely randomly.
Pair Corralation between Livetech and Deutsche Bank
Assuming the 90 days trading horizon Livetech da Bahia is expected to under-perform the Deutsche Bank. In addition to that, Livetech is 1.27 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about -0.04 of its total potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.07 per unit of volatility. If you would invest 5,840 in Deutsche Bank Aktiengesellschaft on September 19, 2024 and sell it today you would earn a total of 4,907 from holding Deutsche Bank Aktiengesellschaft or generate 84.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 88.98% |
| Values | Daily Returns |
Livetech da Bahia vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Livetech da Bahia |
| Deutsche Bank Aktien |
Livetech and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Livetech and Deutsche Bank
The main advantage of trading using opposite Livetech and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Livetech 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.| Livetech vs. T Mobile | Livetech vs. Verizon Communications | Livetech vs. Vodafone Group Public | Livetech vs. Fundo Investimento Imobiliario |
| Deutsche Bank vs. HDFC Bank Limited | Deutsche Bank vs. Ita Unibanco Holding | Deutsche Bank vs. Banco Santander SA | Deutsche Bank vs. SVB Financial Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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