Correlation Between Deutsche Pfandbriefbank and ATRIUM MORTGAGE
Can any of the company-specific risk be diversified away by investing in both Deutsche Pfandbriefbank and ATRIUM MORTGAGE 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 Deutsche Pfandbriefbank and ATRIUM MORTGAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Pfandbriefbank AG and ATRIUM MORTGAGE INVESTM, you can compare the effects of market volatilities on Deutsche Pfandbriefbank and ATRIUM MORTGAGE 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 Deutsche Pfandbriefbank with a short position of ATRIUM MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Pfandbriefbank and ATRIUM MORTGAGE.
Diversification Opportunities for Deutsche Pfandbriefbank and ATRIUM MORTGAGE
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deutsche and ATRIUM is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Pfandbriefbank AG and ATRIUM MORTGAGE INVESTM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRIUM MORTGAGE INVESTM and Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank AG are associated (or correlated) with ATRIUM MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRIUM MORTGAGE INVESTM has no effect on the direction of Deutsche Pfandbriefbank i.e., Deutsche Pfandbriefbank and ATRIUM MORTGAGE go up and down completely randomly.
Pair Corralation between Deutsche Pfandbriefbank and ATRIUM MORTGAGE
Assuming the 90 days trading horizon Deutsche Pfandbriefbank AG is expected to generate 1.74 times more return on investment than ATRIUM MORTGAGE. However, Deutsche Pfandbriefbank is 1.74 times more volatile than ATRIUM MORTGAGE INVESTM. It trades about 0.24 of its potential returns per unit of risk. ATRIUM MORTGAGE INVESTM is currently generating about -0.03 per unit of risk. If you would invest 474.00 in Deutsche Pfandbriefbank AG on October 20, 2024 and sell it today you would earn a total of 51.00 from holding Deutsche Pfandbriefbank AG or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Pfandbriefbank AG vs. ATRIUM MORTGAGE INVESTM
Performance |
| Timeline |
| Deutsche Pfandbriefbank |
| ATRIUM MORTGAGE INVESTM |
Deutsche Pfandbriefbank and ATRIUM MORTGAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Pfandbriefbank and ATRIUM MORTGAGE
The main advantage of trading using opposite Deutsche Pfandbriefbank and ATRIUM MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Pfandbriefbank position performs unexpectedly, ATRIUM MORTGAGE 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 ATRIUM MORTGAGE will offset losses from the drop in ATRIUM MORTGAGE's long position.| Deutsche Pfandbriefbank vs. Mr Cooper Group | Deutsche Pfandbriefbank vs. PennyMac Financial Services | Deutsche Pfandbriefbank vs. OSB GROUP PLC | Deutsche Pfandbriefbank vs. FIRST NATIONAL FIN |
| ATRIUM MORTGAGE vs. Mr Cooper Group | ATRIUM MORTGAGE vs. PennyMac Financial Services | ATRIUM MORTGAGE vs. OSB GROUP PLC | ATRIUM MORTGAGE vs. FIRST NATIONAL FIN |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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