Correlation Between Deutsche Bank and Grand Canyon

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

By analyzing existing cross correlation between Deutsche Bank Aktiengesellschaft and Grand Canyon Education, you can compare the effects of market volatilities on Deutsche Bank and Grand Canyon 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 Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Grand Canyon.

Diversification Opportunities for Deutsche Bank and Grand Canyon

0.0

Correlation Coefficient

Deutsche Bank  Grand Canyon

Pay attention - limited upside

The 3 months correlation between Deutsche and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank Aktiengesellscha and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education 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 Aktiengesellschaft are associated (or correlated) with Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Grand Canyon go up and down completely randomly.

Pair Corralation between Deutsche Bank and Grand Canyon

If you would invest  12,100  in Grand Canyon Education on February 29, 2024 and sell it today you would earn a total of  1,100  from holding Grand Canyon Education or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Deutsche Bank Aktiengesellscha  vs.  Grand Canyon Education

Deutsche Bank Aktien

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Deutsche Bank Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward-looking signals, Deutsche Bank is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Grand Canyon Education

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Grand Canyon Education are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Grand Canyon may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Deutsche Bank and Grand Canyon

The main advantage of trading using opposite Deutsche Bank and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon's long position.

The idea behind Deutsche Bank Aktiengesellschaft and Grand Canyon Education 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.