Correlation Between Deutsche Bank and Komercní Banka

Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Komercní Banka 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 Bank and Komercní Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Deutsche Bank Aktiengesellschaft and Komercn banka as, you can compare the effects of market volatilities on Deutsche Bank and Komercní Banka 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 Bank with a short position of Komercní Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Komercní Banka.

Diversification Opportunities for Deutsche Bank and Komercní Banka

0.67

Correlation Coefficient

Deutsche Bank  Komercní Banka

Poor diversification

The 3 months correlation between Deutsche and Komercní is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as and Deutsche Bank 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 Aktiengesellschaft are associated (or correlated) with Komercní Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Komercní Banka go up and down completely randomly.

Pair Corralation between Deutsche Bank and Komercní Banka

Assuming the 90 days trading horizon Deutsche Bank Aktiengesellschaft is expected to generate 1.26 times more return on investment than Komercní Banka. However, Deutsche Bank is 1.26 times more volatile than Komercn banka as. It trades about 0.05 of its potential returns per unit of risk. Komercn banka as is currently generating about 0.03 per unit of risk. If you would invest  1,111  in Deutsche Bank Aktiengesellschaft on October 5, 2024 and sell it today you would earn a total of  570.00  from holding Deutsche Bank Aktiengesellschaft or generate 51.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Deutsche Bank Aktiengesellscha  vs.  Komercn banka as

Deutsche Bank Aktien

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Deutsche Bank Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Deutsche Bank is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Komercn banka as

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Komercn banka as has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Komercní Banka may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Deutsche Bank and Komercní Banka

The main advantage of trading using opposite Deutsche Bank and Komercní Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Komercní Banka 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 Komercní Banka will offset losses from the drop in Komercní Banka's long position.

The idea behind Deutsche Bank Aktiengesellschaft and Komercn banka as 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.