Correlation Between Deutsche Bank and Global Star

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Global Star 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 Deutsche Bank and Global Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Bank AG and Global Star Acquisition, you can compare the effects of market volatilities on Deutsche Bank and Global Star 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 Deutsche Bank with a short position of Global Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Global Star.

Diversification Opportunities for Deutsche Bank and Global Star

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between Deutsche and Global is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Global Star Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Star Acquisition and Deutsche Bank 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 Deutsche Bank AG are associated (or correlated) with Global Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Star Acquisition has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Global Star go up and down completely randomly.

Pair Corralation between Deutsche Bank and Global Star

Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 4.5 times more return on investment than Global Star. However, Deutsche Bank is 4.5 times more volatile than Global Star Acquisition. It trades about 0.08 of its potential returns per unit of risk. Global Star Acquisition is currently generating about -0.01 per unit of risk. If you would invest  1,616  in Deutsche Bank AG on September 6, 2024 and sell it today you would earn a total of  131.00  from holding Deutsche Bank AG or generate 8.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

Deutsche Bank AG  vs.  Global Star Acquisition

 Performance 
       Timeline  
Deutsche Bank AG 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Deutsche Bank AG are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, Deutsche Bank may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Global Star Acquisition 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Global Star Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Global Star is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Deutsche Bank and Global Star Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Deutsche Bank and Global Star

The main advantage of trading using opposite Deutsche Bank and Global Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Global Star 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 Global Star will offset losses from the drop in Global Star's long position.
The idea behind Deutsche Bank AG and Global Star Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites