Correlation Between NorthView Acquisition and Deutsche Bank

Can any of the company-specific risk be diversified away by investing in both NorthView Acquisition 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 NorthView Acquisition and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NorthView Acquisition and Deutsche Bank AG, you can compare the effects of market volatilities on NorthView Acquisition 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 NorthView Acquisition with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of NorthView Acquisition and Deutsche Bank.

Diversification Opportunities for NorthView Acquisition and Deutsche Bank

0.08

Correlation Coefficient

NorthView Acquisition  Deutsche Bank

Significant diversification

The 3 months correlation between NorthView and Deutsche is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding NorthView Acquisition 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 NorthView Acquisition 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 NorthView Acquisition 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 NorthView Acquisition i.e., NorthView Acquisition and Deutsche Bank go up and down completely randomly.

Pair Corralation between NorthView Acquisition and Deutsche Bank

Assuming the 90 days horizon NorthView Acquisition is expected to generate 127.18 times more return on investment than Deutsche Bank. However, NorthView Acquisition is 127.18 times more volatile than Deutsche Bank AG. It trades about 0.22 of its potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.02 per unit of risk. If you would invest  11.00  in NorthView Acquisition on September 29, 2024 and sell it today you would lose (9.70) from holding NorthView Acquisition or give up 88.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	65.87%
Values	Daily Returns

NorthView Acquisition  vs.  Deutsche Bank AG

NorthView Acquisition

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days NorthView Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Deutsche Bank AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Deutsche Bank AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Deutsche Bank is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with NorthView Acquisition and Deutsche Bank

The main advantage of trading using opposite NorthView Acquisition and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NorthView Acquisition 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.

The idea behind NorthView Acquisition and Deutsche Bank AG 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.

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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.