Correlation Between Deutsche Bank and Byline Bancorp
Can any of the company-specific risk be diversified away by investing in both Deutsche Bank and Byline Bancorp 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 Byline Bancorp 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 Byline Bancorp, you can compare the effects of market volatilities on Deutsche Bank and Byline Bancorp 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 Byline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Bank and Byline Bancorp.
Diversification Opportunities for Deutsche Bank and Byline Bancorp
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deutsche and Byline is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Bank AG and Byline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byline 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 Byline Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byline Bancorp has no effect on the direction of Deutsche Bank i.e., Deutsche Bank and Byline Bancorp go up and down completely randomly.
Pair Corralation between Deutsche Bank and Byline Bancorp
Allowing for the 90-day total investment horizon Deutsche Bank AG is expected to generate 1.41 times more return on investment than Byline Bancorp. However, Deutsche Bank is 1.41 times more volatile than Byline Bancorp. It trades about 0.46 of its potential returns per unit of risk. Byline Bancorp is currently generating about -0.27 per unit of risk. If you would invest 1,297 in Deutsche Bank AG on December 19, 2023 and sell it today you would earn a total of 166.00 from holding Deutsche Bank AG or generate 12.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Deutsche Bank AG vs. Byline Bancorp
Performance |
Timeline |
Deutsche Bank AG |
Byline Bancorp |
Deutsche Bank and Byline Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Deutsche Bank and Byline Bancorp
The main advantage of trading using opposite Deutsche Bank and Byline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Bank position performs unexpectedly, Byline Bancorp 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 Byline Bancorp will offset losses from the drop in Byline Bancorp's long position.Deutsche Bank vs. Associated Capital Group | Deutsche Bank vs. Visa Class A | Deutsche Bank vs. Diamond Hill Investment | Deutsche Bank vs. Carlyle Group |
Byline Bancorp vs. Axos Financial | Byline Bancorp vs. KB Financial Group | Byline Bancorp vs. Nu Holdings | Byline Bancorp vs. Woori Financial Group |
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.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |