Correlation Between Synovus Financial and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Synovus Financial 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 Synovus Financial and Deutsche Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synovus Financial Corp and Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Synovus Financial 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 Synovus Financial with a short position of Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synovus Financial and Deutsche Bank.
Diversification Opportunities for Synovus Financial and Deutsche Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Synovus and Deutsche is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Synovus Financial Corp 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 Synovus Financial 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 Synovus Financial Corp 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 Synovus Financial i.e., Synovus Financial and Deutsche Bank go up and down completely randomly.
Pair Corralation between Synovus Financial and Deutsche Bank
Assuming the 90 days trading horizon Synovus Financial Corp is expected to generate 2.29 times more return on investment than Deutsche Bank. However, Synovus Financial is 2.29 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about 0.2 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 4,580 in Synovus Financial Corp on September 1, 2024 and sell it today you would earn a total of 770.00 from holding Synovus Financial Corp or generate 16.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Synovus Financial Corp vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Synovus Financial Corp |
| Deutsche Bank Aktien |
Synovus Financial and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synovus Financial and Deutsche Bank
The main advantage of trading using opposite Synovus Financial and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synovus Financial 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.| Synovus Financial vs. PARKEN Sport Entertainment | Synovus Financial vs. LPKF Laser Electronics | Synovus Financial vs. UMC Electronics Co | Synovus Financial vs. UET United Electronic |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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