Correlation Between NYSE Composite and Deutsche Managed
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Deutsche Managed 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 NYSE Composite and Deutsche Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Deutsche Managed Municipal, you can compare the effects of market volatilities on NYSE Composite and Deutsche Managed 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 NYSE Composite with a short position of Deutsche Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Deutsche Managed.
Diversification Opportunities for NYSE Composite and Deutsche Managed
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Deutsche is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Deutsche Managed Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Managed Mun and NYSE Composite 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 NYSE Composite are associated (or correlated) with Deutsche Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Managed Mun has no effect on the direction of NYSE Composite i.e., NYSE Composite and Deutsche Managed go up and down completely randomly.
Pair Corralation between NYSE Composite and Deutsche Managed
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Deutsche Managed. In addition to that, NYSE Composite is 2.55 times more volatile than Deutsche Managed Municipal. It trades about -0.05 of its total potential returns per unit of risk. Deutsche Managed Municipal is currently generating about 0.08 per unit of volatility. If you would invest 807.00 in Deutsche Managed Municipal on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Deutsche Managed Municipal or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Deutsche Managed Municipal
Performance |
| Timeline |
NYSE Composite and Deutsche Managed Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Deutsche Managed Municipal
Pair trading matchups for Deutsche Managed
Pair Trading with NYSE Composite and Deutsche Managed
The main advantage of trading using opposite NYSE Composite and Deutsche Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Deutsche Managed 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 Managed will offset losses from the drop in Deutsche Managed's long position.| NYSE Composite vs. Unum Group | NYSE Composite vs. Palomar Holdings | NYSE Composite vs. Fidelity National Financial | NYSE Composite vs. ZW Data Action |
| Deutsche Managed vs. Angel Oak Ultrashort | Deutsche Managed vs. Templeton Developing Markets | Deutsche Managed vs. Jhancock Diversified Macro | Deutsche Managed vs. Investec Emerging Markets |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |