Correlation Between Cortland Bancorp and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Cortland Bancorp 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 Cortland Bancorp and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cortland Bancorp and Deutsche Bank AG, you can compare the effects of market volatilities on Cortland Bancorp 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 Cortland Bancorp with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cortland Bancorp and Deutsche Bank.
Diversification Opportunities for Cortland Bancorp and Deutsche Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cortland and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cortland Bancorp 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 Cortland Bancorp 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 Cortland Bancorp 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 Cortland Bancorp i.e., Cortland Bancorp and Deutsche Bank go up and down completely randomly.
Pair Corralation between Cortland Bancorp and Deutsche Bank
If you would invest 1,297 in Deutsche Bank AG on January 20, 2024 and sell it today you would earn a total of 294.00 from holding Deutsche Bank AG or generate 22.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cortland Bancorp vs. Deutsche Bank AG
Performance |
| Timeline |
| Cortland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Deutsche Bank AG |
Cortland Bancorp and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cortland Bancorp and Deutsche Bank
The main advantage of trading using opposite Cortland Bancorp and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cortland Bancorp 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.| Cortland Bancorp vs. Mid Atlantic Home Health | Cortland Bancorp vs. JBG SMITH Properties | Cortland Bancorp vs. Broadstone Net LeaseInc | Cortland Bancorp vs. Avis Budget Group |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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