Correlation Between Glacier Bancorp and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Glacier 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 Glacier 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 Glacier Bancorp and Deutsche Bank AG, you can compare the effects of market volatilities on Glacier 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 Glacier Bancorp with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glacier Bancorp and Deutsche Bank.
Diversification Opportunities for Glacier Bancorp and Deutsche Bank
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glacier and Deutsche is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Glacier 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 Glacier 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 Glacier 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 Glacier Bancorp i.e., Glacier Bancorp and Deutsche Bank go up and down completely randomly.
Pair Corralation between Glacier Bancorp and Deutsche Bank
Given the investment horizon of 90 days Glacier Bancorp is expected to generate 3.65 times less return on investment than Deutsche Bank. In addition to that, Glacier Bancorp is 1.75 times more volatile than Deutsche Bank AG. It trades about 0.05 of its total potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.34 per unit of volatility. If you would invest 1,338 in Deutsche Bank AG on January 24, 2024 and sell it today you would earn a total of 286.00 from holding Deutsche Bank AG or generate 21.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glacier Bancorp vs. Deutsche Bank AG
Performance |
| Timeline |
| Glacier Bancorp |
| Deutsche Bank AG |
Glacier Bancorp and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glacier Bancorp and Deutsche Bank
The main advantage of trading using opposite Glacier Bancorp and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glacier 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.| Glacier Bancorp vs. HMN Financial | Glacier Bancorp vs. Lake Shore Bancorp | Glacier Bancorp vs. Rhinebeck Bancorp |
| Deutsche Bank vs. Banco Bradesco SA | Deutsche Bank vs. Itau Unibanco Banco | Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Banco Santander Brasil |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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