Correlation Between Global Real and Deutsche Real
Can any of the company-specific risk be diversified away by investing in both Global Real and Deutsche Real 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 Global Real and Deutsche Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Real Estate and Deutsche Real Estate, you can compare the effects of market volatilities on Global Real and Deutsche Real 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 Global Real with a short position of Deutsche Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Real and Deutsche Real.
Diversification Opportunities for Global Real and Deutsche Real
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GLOBAL and Deutsche is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Global Real Estate and Deutsche Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Real Estate and Global Real 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 Global Real Estate are associated (or correlated) with Deutsche Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Real Estate has no effect on the direction of Global Real i.e., Global Real and Deutsche Real go up and down completely randomly.
Pair Corralation between Global Real and Deutsche Real
Assuming the 90 days horizon Global Real Estate is expected to generate 0.9 times more return on investment than Deutsche Real. However, Global Real Estate is 1.11 times less risky than Deutsche Real. It trades about 0.02 of its potential returns per unit of risk. Deutsche Real Estate is currently generating about 0.02 per unit of risk. If you would invest 974.00 in Global Real Estate on September 4, 2025 and sell it today you would earn a total of 8.00 from holding Global Real Estate or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Real Estate vs. Deutsche Real Estate
Performance |
| Timeline |
| Global Real Estate |
| Deutsche Real Estate |
Global Real and Deutsche Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Real and Deutsche Real
The main advantage of trading using opposite Global Real and Deutsche Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Real position performs unexpectedly, Deutsche Real 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 Real will offset losses from the drop in Deutsche Real's long position.| Global Real vs. Touchstone Ultra Short | Global Real vs. Diamond Hill Long Short | Global Real vs. Ultra Short Fixed Income | Global Real vs. Prudential Short Duration |
| Deutsche Real vs. Intermediate Term Bond Fund | Deutsche Real vs. California Bond Fund | Deutsche Real vs. Old Westbury Fixed | Deutsche Real vs. Morningstar Defensive Bond |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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