Correlation Between Monarch Financial and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Monarch Financial 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 Monarch Financial and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monarch Financial Holdings and Deutsche Bank AG, you can compare the effects of market volatilities on Monarch Financial 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 Monarch Financial with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Financial and Deutsche Bank.
Diversification Opportunities for Monarch Financial and Deutsche Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monarch and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monarch Financial Holdings 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 Monarch Financial 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 Monarch Financial Holdings 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 Monarch Financial i.e., Monarch Financial and Deutsche Bank go up and down completely randomly.
Pair Corralation between Monarch Financial and Deutsche Bank
If you would invest 1,536 in Deutsche Bank AG on January 26, 2024 and sell it today you would earn a total of 112.00 from holding Deutsche Bank AG or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Monarch Financial Holdings vs. Deutsche Bank AG
Performance |
| Timeline |
| Monarch Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Deutsche Bank AG |
Monarch Financial and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monarch Financial and Deutsche Bank
The main advantage of trading using opposite Monarch Financial and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monarch Financial 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.| Monarch Financial vs. LithiumBank Resources Corp | Monarch Financial vs. Pintec Technology Holdings | Monarch Financial vs. AmTrust Financial Services | Monarch Financial vs. Freedom Bank of |
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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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