Correlation Between GLOBUS MEDICAL and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both GLOBUS MEDICAL 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 GLOBUS MEDICAL and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBUS MEDICAL A and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on GLOBUS MEDICAL 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 GLOBUS MEDICAL with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBUS MEDICAL and Deutsche Bank.
Diversification Opportunities for GLOBUS MEDICAL and Deutsche Bank
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GLOBUS and Deutsche is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding GLOBUS MEDICAL A and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien and GLOBUS MEDICAL 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 GLOBUS MEDICAL A 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 Aktien has no effect on the direction of GLOBUS MEDICAL i.e., GLOBUS MEDICAL and Deutsche Bank go up and down completely randomly.
Pair Corralation between GLOBUS MEDICAL and Deutsche Bank
Assuming the 90 days trading horizon GLOBUS MEDICAL A is expected to under-perform the Deutsche Bank. In addition to that, GLOBUS MEDICAL is 1.04 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about -0.1 of its total potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.14 per unit of volatility. If you would invest 1,571 in Deutsche Bank Aktiengesellschaft on September 26, 2024 and sell it today you would earn a total of 60.00 from holding Deutsche Bank Aktiengesellschaft or generate 3.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GLOBUS MEDICAL A vs. Deutsche Bank Aktiengesellscha
Performance |
Timeline |
GLOBUS MEDICAL A |
Deutsche Bank Aktien |
GLOBUS MEDICAL and Deutsche Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GLOBUS MEDICAL and Deutsche Bank
The main advantage of trading using opposite GLOBUS MEDICAL and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBUS MEDICAL 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.GLOBUS MEDICAL vs. Apple Inc | GLOBUS MEDICAL vs. Apple Inc | GLOBUS MEDICAL vs. Microsoft | GLOBUS MEDICAL vs. Microsoft |
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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.
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