Correlation Between Deutsche Börse and FactSet Research

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

By analyzing existing cross correlation between Deutsche Brse AG and FactSet Research Systems, you can compare the effects of market volatilities on Deutsche Börse and FactSet Research 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 Börse with a short position of FactSet Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Börse and FactSet Research.

Diversification Opportunities for Deutsche Börse and FactSet Research

0.0

Correlation Coefficient

Deutsche Börse  FactSet Research

Pay attention - limited upside

The 3 months correlation between Deutsche and FactSet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Brse AG and FactSet Research Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FactSet Research Systems and Deutsche Börse 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 Brse AG are associated (or correlated) with FactSet Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FactSet Research Systems has no effect on the direction of Deutsche Börse i.e., Deutsche Börse and FactSet Research go up and down completely randomly.

Pair Corralation between Deutsche Börse and FactSet Research

Assuming the 90 days horizon Deutsche Börse is expected to generate 195.18 times less return on investment than FactSet Research. In addition to that, Deutsche Börse is 1.72 times more volatile than FactSet Research Systems. It trades about 0.0 of its total potential returns per unit of risk. FactSet Research Systems is currently generating about 0.18 per unit of volatility. If you would invest  42,610  in FactSet Research Systems on September 5, 2024 and sell it today you would earn a total of  5,942  from holding FactSet Research Systems or generate 13.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Deutsche Brse AG  vs.  FactSet Research Systems

Deutsche Brse AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Deutsche Brse AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Deutsche Börse is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

FactSet Research Systems

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FactSet Research Systems are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, FactSet Research unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Deutsche Börse and FactSet Research

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

The idea behind Deutsche Brse AG and FactSet Research Systems 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.