Correlation Between Atlanticus Holdings and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings 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 Atlanticus Holdings and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings and Deutsche Bank AG, you can compare the effects of market volatilities on Atlanticus Holdings 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 Atlanticus Holdings with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Deutsche Bank.
Diversification Opportunities for Atlanticus Holdings and Deutsche Bank
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlanticus and Deutsche is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus 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 Atlanticus Holdings 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 Atlanticus 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 Atlanticus Holdings i.e., Atlanticus Holdings and Deutsche Bank go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and Deutsche Bank
Given the investment horizon of 90 days Atlanticus Holdings is expected to under-perform the Deutsche Bank. In addition to that, Atlanticus Holdings is 1.62 times more volatile than Deutsche Bank AG. It trades about -0.26 of its total potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.17 per unit of volatility. If you would invest 1,463 in Deutsche Bank AG on January 18, 2024 and sell it today you would earn a total of 74.00 from holding Deutsche Bank AG or generate 5.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Atlanticus Holdings vs. Deutsche Bank AG
Performance |
Timeline |
Atlanticus Holdings |
Deutsche Bank AG |
Atlanticus Holdings and Deutsche Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atlanticus Holdings and Deutsche Bank
The main advantage of trading using opposite Atlanticus Holdings and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings 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.Atlanticus Holdings vs. Visa Class A | Atlanticus Holdings vs. PayPal Holdings | Atlanticus Holdings vs. Mastercard |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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