Correlation Between Deutsche Latin and Deutsche Gnma
Can any of the company-specific risk be diversified away by investing in both Deutsche Latin and Deutsche Gnma 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 Latin and Deutsche Gnma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Latin America and Deutsche Gnma Fund, you can compare the effects of market volatilities on Deutsche Latin and Deutsche Gnma 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 Latin with a short position of Deutsche Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Latin and Deutsche Gnma.
Diversification Opportunities for Deutsche Latin and Deutsche Gnma
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Deutsche and Deutsche is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Latin America and Deutsche Gnma Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Gnma and Deutsche Latin 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 Latin America are associated (or correlated) with Deutsche Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Gnma has no effect on the direction of Deutsche Latin i.e., Deutsche Latin and Deutsche Gnma go up and down completely randomly.
Pair Corralation between Deutsche Latin and Deutsche Gnma
Assuming the 90 days horizon Deutsche Latin America is expected to under-perform the Deutsche Gnma. In addition to that, Deutsche Latin is 2.42 times more volatile than Deutsche Gnma Fund. It trades about -0.3 of its total potential returns per unit of risk. Deutsche Gnma Fund is currently generating about 0.12 per unit of volatility. If you would invest 1,158 in Deutsche Gnma Fund on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Deutsche Gnma Fund or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Latin America vs. Deutsche Gnma Fund
Performance |
| Timeline |
| Deutsche Latin America |
| Deutsche Gnma |
Deutsche Latin and Deutsche Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Latin and Deutsche Gnma
The main advantage of trading using opposite Deutsche Latin and Deutsche Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Latin position performs unexpectedly, Deutsche Gnma 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 Gnma will offset losses from the drop in Deutsche Gnma's long position.| Deutsche Latin vs. Doubleline Global Bond | Deutsche Latin vs. Ab Global Real | Deutsche Latin vs. Ab Global Real | Deutsche Latin vs. 361 Global Longshort |
| Deutsche Gnma vs. Rationalpier 88 Convertible | Deutsche Gnma vs. Ab Bond Inflation | Deutsche Gnma vs. California Bond Fund | Deutsche Gnma vs. Maryland Tax Free Bond |
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
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |