Correlation Between DEUTSCHE and International Consolidated
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By analyzing existing cross correlation between DEUTSCHE BANK AG and International Consolidated Airlines, you can compare the effects of market volatilities on DEUTSCHE and International Consolidated 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 with a short position of International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of DEUTSCHE and International Consolidated.
Diversification Opportunities for DEUTSCHE and International Consolidated
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DEUTSCHE and International is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding DEUTSCHE BANK AG and International Consolidated Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Consolidated and DEUTSCHE 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 BANK AG are associated (or correlated) with International Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Consolidated has no effect on the direction of DEUTSCHE i.e., DEUTSCHE and International Consolidated go up and down completely randomly.
Pair Corralation between DEUTSCHE and International Consolidated
Assuming the 90 days trading horizon DEUTSCHE is expected to generate 18.97 times less return on investment than International Consolidated. But when comparing it to its historical volatility, DEUTSCHE BANK AG is 12.07 times less risky than International Consolidated. It trades about 0.11 of its potential returns per unit of risk. International Consolidated Airlines is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 360.00 in International Consolidated Airlines on October 14, 2024 and sell it today you would earn a total of 413.00 from holding International Consolidated Airlines or generate 114.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 78.63% |
| Values | Daily Returns |
DEUTSCHE BANK AG vs. International Consolidated Air
Performance |
| Timeline |
| DEUTSCHE BANK AG |
| International Consolidated |
DEUTSCHE and International Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DEUTSCHE and International Consolidated
The main advantage of trading using opposite DEUTSCHE and International Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DEUTSCHE position performs unexpectedly, International Consolidated 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 International Consolidated will offset losses from the drop in International Consolidated's long position.| DEUTSCHE vs. Hudson Technologies | DEUTSCHE vs. American Airlines Group | DEUTSCHE vs. Hawkins | DEUTSCHE vs. International Consolidated Airlines |
| International Consolidated vs. Air France KLM SA | International Consolidated vs. Air France KLM | International Consolidated vs. Finnair Oyj | International Consolidated vs. AirAsia Group Berhad |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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