Correlation Between Deutsche Bank and UBS Group

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

Diversification Opportunities for Deutsche Bank and UBS Group

0.92

Correlation Coefficient

Deutsche Bank  UBS Group

Almost no diversification

The 3 months correlation between Deutsche and UBS is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and UBS Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Group AG 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 UBS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Group AG has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and UBS Group go up and down completely randomly.

Pair Corralation between Deutsche Bank and UBS Group

Allowing for the 90-day total investment horizon Deutsche Bank is expected to generate 2.37 times less return on investment than UBS Group. In addition to that, Deutsche Bank is 1.03 times more volatile than UBS Group AG. It trades about 0.07 of its total potential returns per unit of risk. UBS Group AG is currently generating about 0.18 per unit of volatility. If you would invest  3,966  in UBS Group AG on July 2, 2025 and sell it today you would earn a total of  167.00  from holding UBS Group AG or generate 4.21% return on investment over 90 days.

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

Deutsche Bank AG  vs.  UBS Group AG

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 14 (%) 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.

UBS Group AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in UBS Group AG are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady fundamental drivers, UBS Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Deutsche Bank and UBS Group

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

The idea behind Deutsche Bank AG and UBS Group 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.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.