Correlation Between Deutsche Bank and Sandy Spring
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Sandy Spring 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 Bank and Sandy Spring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Bank AG and Sandy Spring Bancorp, you can compare the effects of market volatilities on Deutsche Bank and Sandy Spring 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 Bank with a short position of Sandy Spring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Sandy Spring.
Diversification Opportunities for Deutsche Bank and Sandy Spring
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Deutsche and Sandy is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Sandy Spring Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandy Spring Bancorp and Deutsche 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 Deutsche Bank AG are associated (or correlated) with Sandy Spring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandy Spring Bancorp has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Sandy Spring go up and down completely randomly.
Pair Corralation between Deutsche Bank and Sandy Spring
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 0.81 times more return on investment than Sandy Spring. However, Deutsche Bank AG is 1.24 times less risky than Sandy Spring. It trades about 0.1 of its potential returns per unit of risk. Sandy Spring Bancorp is currently generating about 0.03 per unit of risk. If you would invest 972.00 in Deutsche Bank AG on December 5, 2024 and sell it today you would earn a total of 1,359 from holding Deutsche Bank AG or generate 139.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Bank AG vs. Sandy Spring Bancorp
Performance |
| Timeline |
| Deutsche Bank AG |
| Sandy Spring Bancorp |
Deutsche Bank and Sandy Spring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Bank and Sandy Spring
The main advantage of trading using opposite Deutsche Bank and Sandy Spring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Sandy Spring 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 Sandy Spring will offset losses from the drop in Sandy Spring's long position.| Deutsche Bank vs. Banco Bradesco SA | ||
| Deutsche Bank vs. Itau Unibanco Banco | ||
| Deutsche Bank vs. Lloyds Banking Group | ||
| Deutsche Bank vs. Banco Santander Brasil |
| Sandy Spring vs. Northrim BanCorp | ||
| Sandy Spring vs. Provident Financial Services | ||
| Sandy Spring vs. Community Trust Bancorp | ||
| Sandy Spring vs. First Interstate BancSystem |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |