Correlation Between PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PROSIEBENSAT1 MEDIADR4 and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank.
Diversification Opportunities for PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between PROSIEBENSAT1 and Deutsche is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding PROSIEBENSAT1 MEDIADR4 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 PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4 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 PROSIEBENSAT1 MEDIADR4/ i.e., PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank go up and down completely randomly.
Pair Corralation between PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank
Assuming the 90 days trading horizon PROSIEBENSAT1 MEDIADR4 is expected to under-perform the Deutsche Bank. In addition to that, PROSIEBENSAT1 MEDIADR4/ is 1.76 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about -0.02 of its total potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.05 per unit of volatility. If you would invest 1,103 in Deutsche Bank Aktiengesellschaft on September 30, 2024 and sell it today you would earn a total of 550.00 from holding Deutsche Bank Aktiengesellschaft or generate 49.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PROSIEBENSAT1 MEDIADR4 vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| PROSIEBENSAT1 MEDIADR4/ |
| Deutsche Bank Aktien |
PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank
The main advantage of trading using opposite PROSIEBENSAT1 MEDIADR4/ and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROSIEBENSAT1 MEDIADR4/ 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.| PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc |
| Deutsche Bank vs. PROSIEBENSAT1 MEDIADR4 | Deutsche Bank vs. ALERION CLEANPOWER | Deutsche Bank vs. Scientific Games | Deutsche Bank vs. ZINC MEDIA GR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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