Correlation Between Sberbank and Commerzbank
Can any of the company-specific risk be diversified away by investing in both Sberbank and Commerzbank 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 Sberbank and Commerzbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sberbank Of Russia and Commerzbank AG PK, you can compare the effects of market volatilities on Sberbank and Commerzbank 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 Sberbank with a short position of Commerzbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sberbank and Commerzbank.
Diversification Opportunities for Sberbank and Commerzbank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sberbank and Commerzbank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sberbank Of Russia and Commerzbank AG PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerzbank AG PK and Sberbank 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 Sberbank Of Russia are associated (or correlated) with Commerzbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerzbank AG PK has no effect on the direction of Sberbank i.e., Sberbank and Commerzbank go up and down completely randomly.
Pair Corralation between Sberbank and Commerzbank
If you would invest 1,364 in Commerzbank AG PK on January 24, 2024 and sell it today you would earn a total of 119.00 from holding Commerzbank AG PK or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sberbank Of Russia vs. Commerzbank AG PK
Performance |
| Timeline |
| Sberbank Of Russia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Commerzbank AG PK |
Sberbank and Commerzbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sberbank and Commerzbank
The main advantage of trading using opposite Sberbank and Commerzbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sberbank position performs unexpectedly, Commerzbank 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 Commerzbank will offset losses from the drop in Commerzbank's long position.| Sberbank vs. JD Sports Fashion | Sberbank vs. Braskem SA Class | Sberbank vs. Emerson Radio | Sberbank vs. Gulf Resources |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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