Correlation Between Bank of New York Mellon and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Bank of New York Mellon and Deutsche Post 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 Bank of New York Mellon and Deutsche Post into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and Deutsche Post AG, you can compare the effects of market volatilities on Bank of New York Mellon and Deutsche Post 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 Bank of New York Mellon with a short position of Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York Mellon and Deutsche Post.
Diversification Opportunities for Bank of New York Mellon and Deutsche Post
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Deutsche is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG and Bank of New York Mellon 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 The Bank of are associated (or correlated) with Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Bank of New York Mellon i.e., Bank of New York Mellon and Deutsche Post go up and down completely randomly.
Pair Corralation between Bank of New York Mellon and Deutsche Post
Assuming the 90 days horizon The Bank of is expected to generate 0.76 times more return on investment than Deutsche Post. However, The Bank of is 1.32 times less risky than Deutsche Post. It trades about 0.34 of its potential returns per unit of risk. Deutsche Post AG is currently generating about -0.14 per unit of risk. If you would invest 6,942 in The Bank of on September 1, 2024 and sell it today you would earn a total of 863.00 from holding The Bank of or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Bank of vs. Deutsche Post AG
Performance |
| Timeline |
| Bank of New York Mellon |
| Deutsche Post AG |
Bank of New York Mellon and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York Mellon and Deutsche Post
The main advantage of trading using opposite Bank of New York Mellon and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York Mellon position performs unexpectedly, Deutsche Post 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 Post will offset losses from the drop in Deutsche Post's long position.| Bank of New York Mellon vs. Haverty Furniture Companies | Bank of New York Mellon vs. CarsalesCom | Bank of New York Mellon vs. Commercial Vehicle Group | Bank of New York Mellon vs. Neinor Homes SA |
| Deutsche Post vs. ZTO Express | Deutsche Post vs. Superior Plus Corp | Deutsche Post vs. Origin Agritech | Deutsche Post vs. Identiv |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |