Correlation Between Stellar and DEUTSCHE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Stellar and DEUTSCHE BANK AG, you can compare the effects of market volatilities on Stellar and DEUTSCHE 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 Stellar with a short position of DEUTSCHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar and DEUTSCHE.
Diversification Opportunities for Stellar and DEUTSCHE
Good diversification
The 3 months correlation between Stellar and DEUTSCHE is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and DEUTSCHE BANK AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE BANK AG and Stellar 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 Stellar are associated (or correlated) with DEUTSCHE. 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 AG has no effect on the direction of Stellar i.e., Stellar and DEUTSCHE go up and down completely randomly.
Pair Corralation between Stellar and DEUTSCHE
Assuming the 90 days trading horizon Stellar is expected to generate 62.91 times more return on investment than DEUTSCHE. However, Stellar is 62.91 times more volatile than DEUTSCHE BANK AG. It trades about 0.03 of its potential returns per unit of risk. DEUTSCHE BANK AG is currently generating about 0.1 per unit of risk. If you would invest 42.00 in Stellar on October 14, 2024 and sell it today you would lose (1.00) from holding Stellar or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Stellar vs. DEUTSCHE BANK AG
Performance |
| Timeline |
| Stellar |
| DEUTSCHE BANK AG |
Stellar and DEUTSCHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar and DEUTSCHE
The main advantage of trading using opposite Stellar and DEUTSCHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar position performs unexpectedly, DEUTSCHE 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 will offset losses from the drop in DEUTSCHE's long position.The idea behind Stellar and DEUTSCHE BANK AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| DEUTSCHE vs. Hudson Technologies | DEUTSCHE vs. American Airlines Group | DEUTSCHE vs. Hawkins | DEUTSCHE vs. International Consolidated Airlines |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |