Correlation Between Deutsche Bank and CFSB Bancorp

Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and CFSB Bancorp 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 CFSB Bancorp 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 CFSB Bancorp, you can compare the effects of market volatilities on Deutsche Bank and CFSB Bancorp 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 CFSB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and CFSB Bancorp.

Diversification Opportunities for Deutsche Bank and CFSB Bancorp

0.38

Correlation Coefficient

Deutsche Bank  CFSB Bancorp

Weak diversification

The 3 months correlation between Deutsche and CFSB is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and CFSB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFSB Bancorp 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 CFSB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFSB Bancorp has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and CFSB Bancorp go up and down completely randomly.

Pair Corralation between Deutsche Bank and CFSB Bancorp

Allowing for the 90-day total investment horizon Deutsche Bank is expected to generate 2.48 times less return on investment than CFSB Bancorp. But when comparing it to its historical volatility, Deutsche Bank AG is 4.33 times less risky than CFSB Bancorp. It trades about 0.23 of its potential returns per unit of risk. CFSB Bancorp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  804.00  in CFSB Bancorp on May 18, 2025 and sell it today you would earn a total of  586.00  from holding CFSB Bancorp or generate 72.89% return on investment over 90 days.

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

Deutsche Bank AG  vs.  CFSB Bancorp

Deutsche Bank AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Bank AG are ranked lower than 18 (%) 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.

CFSB Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CFSB Bancorp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, CFSB Bancorp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Deutsche Bank and CFSB Bancorp

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

The idea behind Deutsche Bank AG and CFSB Bancorp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.