Correlation Between Deutsche Pfandbriefbank and OSB GROUP
Can any of the company-specific risk be diversified away by investing in both Deutsche Pfandbriefbank and OSB GROUP 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 Pfandbriefbank and OSB GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Pfandbriefbank AG and OSB GROUP PLC, you can compare the effects of market volatilities on Deutsche Pfandbriefbank and OSB GROUP 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 Pfandbriefbank with a short position of OSB GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Pfandbriefbank and OSB GROUP.
Diversification Opportunities for Deutsche Pfandbriefbank and OSB GROUP
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Deutsche and OSB is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Pfandbriefbank AG and OSB GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSB GROUP PLC and Deutsche Pfandbriefbank 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 Pfandbriefbank AG are associated (or correlated) with OSB GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSB GROUP PLC has no effect on the direction of Deutsche Pfandbriefbank i.e., Deutsche Pfandbriefbank and OSB GROUP go up and down completely randomly.
Pair Corralation between Deutsche Pfandbriefbank and OSB GROUP
Assuming the 90 days trading horizon Deutsche Pfandbriefbank AG is expected to under-perform the OSB GROUP. But the stock apears to be less risky and, when comparing its historical volatility, Deutsche Pfandbriefbank AG is 1.18 times less risky than OSB GROUP. The stock trades about -0.15 of its potential returns per unit of risk. The OSB GROUP PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 452.00 in OSB GROUP PLC on September 25, 2024 and sell it today you would earn a total of 14.00 from holding OSB GROUP PLC or generate 3.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Deutsche Pfandbriefbank AG vs. OSB GROUP PLC
Performance |
Timeline |
Deutsche Pfandbriefbank |
OSB GROUP PLC |
Deutsche Pfandbriefbank and OSB GROUP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Deutsche Pfandbriefbank and OSB GROUP
The main advantage of trading using opposite Deutsche Pfandbriefbank and OSB GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Pfandbriefbank position performs unexpectedly, OSB GROUP 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 OSB GROUP will offset losses from the drop in OSB GROUP's long position.Deutsche Pfandbriefbank vs. Mr Cooper Group | Deutsche Pfandbriefbank vs. OSB GROUP PLC | Deutsche Pfandbriefbank vs. FIRST NATIONAL FIN | Deutsche Pfandbriefbank vs. ELLINGTON FINL INC |
OSB GROUP vs. Mr Cooper Group | OSB GROUP vs. FIRST NATIONAL FIN | OSB GROUP vs. Deutsche Pfandbriefbank AG | OSB GROUP vs. ELLINGTON FINL INC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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