Correlation Between AllianceBernstein and Deutsche Bank

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

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

Diversification Opportunities for AllianceBernstein and Deutsche Bank

0.68

Correlation Coefficient

AllianceBernstein  Deutsche Bank

Poor diversification

The 3 months correlation between AllianceBernstein and Deutsche is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AllianceBernstein Holding LP 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 AllianceBernstein 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 AllianceBernstein Holding LP are associated (or correlated) with Deutsche Bank. 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 AllianceBernstein i.e., AllianceBernstein and Deutsche Bank go up and down completely randomly.

Pair Corralation between AllianceBernstein and Deutsche Bank

Allowing for the 90-day total investment horizon AllianceBernstein is expected to generate 15.0 times less return on investment than Deutsche Bank. But when comparing it to its historical volatility, AllianceBernstein Holding LP is 1.61 times less risky than Deutsche Bank. It trades about 0.02 of its potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  2,608  in Deutsche Bank AG on May 6, 2025 and sell it today you would earn a total of  645.00  from holding Deutsche Bank AG or generate 24.73% return on investment over 90 days.

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

AllianceBernstein Holding LP  vs.  Deutsche Bank AG

AllianceBernstein

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AllianceBernstein Holding LP are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, AllianceBernstein is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Deutsche Bank AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Bank AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental drivers, Deutsche Bank sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AllianceBernstein and Deutsche Bank

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

The idea behind AllianceBernstein Holding LP 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.