Correlation Between Delhi Bank and Hang Seng
Can any of the company-specific risk be diversified away by investing in both Delhi Bank and Hang Seng 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 Delhi Bank and Hang Seng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delhi Bank Corp and Hang Seng Bank, you can compare the effects of market volatilities on Delhi Bank and Hang Seng 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 Delhi Bank with a short position of Hang Seng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delhi Bank and Hang Seng.
Diversification Opportunities for Delhi Bank and Hang Seng
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Delhi and Hang is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Delhi Bank Corp and Hang Seng Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Seng Bank and Delhi 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 Delhi Bank Corp are associated (or correlated) with Hang Seng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Seng Bank has no effect on the direction of Delhi Bank i.e., Delhi Bank and Hang Seng go up and down completely randomly.
Pair Corralation between Delhi Bank and Hang Seng
Given the investment horizon of 90 days Delhi Bank Corp is expected to generate 0.13 times more return on investment than Hang Seng. However, Delhi Bank Corp is 7.98 times less risky than Hang Seng. It trades about -0.22 of its potential returns per unit of risk. Hang Seng Bank is currently generating about -0.09 per unit of risk. If you would invest 2,065 in Delhi Bank Corp on September 2, 2024 and sell it today you would lose (15.00) from holding Delhi Bank Corp or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delhi Bank Corp vs. Hang Seng Bank
Performance |
| Timeline |
| Delhi Bank Corp |
| Hang Seng Bank |
Delhi Bank and Hang Seng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delhi Bank and Hang Seng
The main advantage of trading using opposite Delhi Bank and Hang Seng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delhi Bank position performs unexpectedly, Hang Seng 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 Hang Seng will offset losses from the drop in Hang Seng's long position.| Delhi Bank vs. Piraeus Bank SA | Delhi Bank vs. Turkiye Garanti Bankasi | Delhi Bank vs. Uwharrie Capital Corp |
| Hang Seng vs. Piraeus Bank SA | Hang Seng vs. Turkiye Garanti Bankasi | Hang Seng vs. Uwharrie Capital 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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