Correlation Between Deutsche Health and Campbell Systematic

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

By analyzing existing cross correlation between Deutsche Health And and Campbell Systematic Macro, you can compare the effects of market volatilities on Deutsche Health and Campbell Systematic 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 Health with a short position of Campbell Systematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Health and Campbell Systematic.

Diversification Opportunities for Deutsche Health and Campbell Systematic

-0.71

Correlation Coefficient

Deutsche Health  Campbell Systematic

Pay attention - limited upside

The 3 months correlation between Deutsche and Campbell is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Health And and Campbell Systematic Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Systematic Macro and Deutsche Health 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 Health And are associated (or correlated) with Campbell Systematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Systematic Macro has no effect on the direction of Deutsche Health i.e., Deutsche Health and Campbell Systematic go up and down completely randomly.

Pair Corralation between Deutsche Health and Campbell Systematic

Assuming the 90 days horizon Deutsche Health is expected to generate 1.94 times less return on investment than Campbell Systematic. In addition to that, Deutsche Health is 1.21 times more volatile than Campbell Systematic Macro. It trades about 0.02 of its total potential returns per unit of risk. Campbell Systematic Macro is currently generating about 0.04 per unit of volatility. If you would invest  875.00  in Campbell Systematic Macro on October 11, 2024 and sell it today you would earn a total of  106.00  from holding Campbell Systematic Macro or generate 12.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Deutsche Health And  vs.  Campbell Systematic Macro

Deutsche Health And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Deutsche Health And has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Campbell Systematic Macro

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Campbell Systematic Macro are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Campbell Systematic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Deutsche Health and Campbell Systematic

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

The idea behind Deutsche Health And and Campbell Systematic Macro 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.

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