Correlation Between Santander Bank and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Santander Bank and Deutsche Bank 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 Santander Bank and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santander Bank Polska and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Santander Bank and Deutsche Bank 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 Santander Bank with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santander Bank and Deutsche Bank.
Diversification Opportunities for Santander Bank and Deutsche Bank
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Santander and Deutsche is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Santander Bank Polska and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien and Santander 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 Santander Bank Polska are associated (or correlated) with Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank Aktien has no effect on the direction of Santander Bank i.e., Santander Bank and Deutsche Bank go up and down completely randomly.
Pair Corralation between Santander Bank and Deutsche Bank
Assuming the 90 days horizon Santander Bank Polska is expected to generate 2.27 times more return on investment than Deutsche Bank. However, Santander Bank is 2.27 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about 0.04 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.08 per unit of risk. If you would invest 8,145 in Santander Bank Polska on September 1, 2024 and sell it today you would earn a total of 1,985 from holding Santander Bank Polska or generate 24.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santander Bank Polska vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Santander Bank Polska |
| Deutsche Bank Aktien |
Santander Bank and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santander Bank and Deutsche Bank
The main advantage of trading using opposite Santander Bank and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santander Bank position performs unexpectedly, Deutsche Bank 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 Bank will offset losses from the drop in Deutsche Bank's long position.| Santander Bank vs. Lion One Metals | Santander Bank vs. NURAN WIRELESS INC | Santander Bank vs. CENTURIA OFFICE REIT | Santander Bank vs. Carsales |
| Deutsche Bank vs. AAC TECHNOLOGHLDGADR | Deutsche Bank vs. Ryanair Holdings plc | Deutsche Bank vs. SOFI TECHNOLOGIES | Deutsche Bank vs. Pembina Pipeline Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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