Correlation Between Deutsche Multi-asset and International Small
Can any of the company-specific risk be diversified away by investing in both Deutsche Multi-asset and International Small 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 Multi-asset and International Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Multi Asset Moderate and International Small Pany, you can compare the effects of market volatilities on Deutsche Multi-asset and International Small 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 Multi-asset with a short position of International Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Multi-asset and International Small.
Diversification Opportunities for Deutsche Multi-asset and International Small
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Deutsche and International is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Multi Asset Moderate and International Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Small Pany and Deutsche Multi-asset 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 Multi Asset Moderate are associated (or correlated) with International Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Small Pany has no effect on the direction of Deutsche Multi-asset i.e., Deutsche Multi-asset and International Small go up and down completely randomly.
Pair Corralation between Deutsche Multi-asset and International Small
Assuming the 90 days horizon Deutsche Multi-asset is expected to generate 1.08 times less return on investment than International Small. But when comparing it to its historical volatility, Deutsche Multi Asset Moderate is 1.82 times less risky than International Small. It trades about 0.21 of its potential returns per unit of risk. International Small Pany is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,175 in International Small Pany on June 2, 2025 and sell it today you would earn a total of 65.00 from holding International Small Pany or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Multi Asset Moderate vs. International Small Pany
Performance |
| Timeline |
| Deutsche Multi Asset |
| International Small Pany |
Deutsche Multi-asset and International Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Multi-asset and International Small
The main advantage of trading using opposite Deutsche Multi-asset and International Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Multi-asset position performs unexpectedly, International Small 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 International Small will offset losses from the drop in International Small's long position.| Deutsche Multi-asset vs. Jpmorgan Smartretirement 2035 | Deutsche Multi-asset vs. Sierra E Retirement | Deutsche Multi-asset vs. Calvert Moderate Allocation | Deutsche Multi-asset vs. Target Retirement 2040 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |