Should you keep an eye on Deutsche Bank (NYSE:DB) management before November?


USD 10.81  0.16  1.50%   

It appears Deutsche Bank may not have a good chance to recover from the current slip as its shares fell again. Deutsche Bank AG current daily volatility is 2.57 percent, with a beta of 1.33 and an alpha of -0.11 over DOW. As many millenniums are trying to avoid the current volatility, we are going to go over Deutsche Bank AG a little further to understand its historical price patterns. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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The company is active under Financial Services sector as part of Banks—Regional industry.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Deutsche Bank has an asset utilization ratio of 1.54 percent. This suggests that the company is making $0.0154 for each dollar of assets. An increasing asset utilization means that Deutsche Bank AG is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in Deutsche Bank, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Deutsche Bank along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Deutsche Bank's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Deutsche Bank in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Deutsche Bank. Your research has to be compared to or analyzed against Deutsche Bank's peers to derive any actionable benefits. When done correctly, Deutsche Bank's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Deutsche Bank AG.

How important is Deutsche Bank's Liquidity

Deutsche Bank financial leverage refers to using borrowed capital as a funding source to finance Deutsche Bank AG ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Deutsche Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Deutsche Bank's total debt and its cash.

How does Deutsche utilize its cash?

To perform a cash flow analysis of Deutsche Bank, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Deutsche Bank is receiving and how much cash it distributes out in a given period. The Deutsche Bank cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Deutsche Bank Correlation with Peers

Investors in Deutsche can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Deutsche Bank AG. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Deutsche Bank and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Deutsche is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Deutsche for more details

Breaking down Deutsche Bank Further

Deutsche Bank AG secures Sharpe Ratio (or Efficiency) of -0.0483, which denotes the company had -0.0483% of return per unit of risk over the last 3 months. Macroaxis standpoint towards predicting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Deutsche Bank AG exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Deutsche Bank AG mean deviation of 2.13, and Coefficient Of Variation of (1,008) to check the risk estimate we provide.

Deutsche Bank has 97 percent odds to go over $7.55 this year

Current risk adjusted performance indicator falls down to -0.11. Possible price jump? Deutsche Bank AG exhibits very low volatility with skewness of 0.07 and kurtosis of -0.54. However, we advise investors to further study Deutsche Bank AG technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Deutsche Bank's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Deutsche Bank's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Deutsche Bank Investment

Whereas some firms in the banks—regional industry are either recovering or due for a correction, Deutsche Bank may not be performing as strong as the other in terms of long-term growth potentials. On the whole, as of the 1st of October 2022, our research shows that Deutsche Bank is a rather somewhat reliable investment opportunity with a close to average odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our concluding 90 days advice on the company is Cautious Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Deutsche Bank AG. Please refer to our Terms of Use for any information regarding our disclosure principles.

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