Correlation Between Deutsche Bank and AllianceBernstein
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and AllianceBernstein 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 AllianceBernstein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Bank AG and AllianceBernstein Holding LP, you can compare the effects of market volatilities on Deutsche Bank and AllianceBernstein 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 AllianceBernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and AllianceBernstein.
Diversification Opportunities for Deutsche Bank and AllianceBernstein
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Deutsche and AllianceBernstein is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and AllianceBernstein Holding LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianceBernstein 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 AG are associated (or correlated) with AllianceBernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllianceBernstein has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and AllianceBernstein go up and down completely randomly.
Pair Corralation between Deutsche Bank and AllianceBernstein
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 1.83 times more return on investment than AllianceBernstein. However, Deutsche Bank is 1.83 times more volatile than AllianceBernstein Holding LP. It trades about 0.19 of its potential returns per unit of risk. AllianceBernstein Holding LP is currently generating about 0.09 per unit of risk. If you would invest 1,359 in Deutsche Bank AG on January 31, 2024 and sell it today you would earn a total of 265.00 from holding Deutsche Bank AG or generate 19.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Deutsche Bank AG vs. AllianceBernstein Holding LP
Performance |
Timeline |
Deutsche Bank AG |
AllianceBernstein |
Deutsche Bank and AllianceBernstein Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Deutsche Bank and AllianceBernstein
The main advantage of trading using opposite Deutsche Bank and AllianceBernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, AllianceBernstein 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 AllianceBernstein will offset losses from the drop in AllianceBernstein's long position.Deutsche Bank vs. EZCORP Inc | Deutsche Bank vs. Orix Corp Ads | Deutsche Bank vs. SLM Corp | Deutsche Bank vs. Navient Corp |
AllianceBernstein vs. Pimco Corporate Income | AllianceBernstein vs. Pimco Income Strategy | AllianceBernstein vs. Pcm Fund | AllianceBernstein vs. Pimco High Income |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Transaction History View history of all your transactions and understand their impact on performance | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Fundamental Analysis View fundamental data based on most recent published financial statements |