Correlation Between Delhi Bank and Infinity Bank
Can any of the company-specific risk be diversified away by investing in both Delhi Bank and Infinity 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 Delhi Bank and Infinity Bank 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 Infinity Bank, you can compare the effects of market volatilities on Delhi Bank and Infinity 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 Delhi Bank with a short position of Infinity Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delhi Bank and Infinity Bank.
Diversification Opportunities for Delhi Bank and Infinity Bank
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Delhi and Infinity is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Delhi Bank Corp and Infinity Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity 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 Infinity Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Bank has no effect on the direction of Delhi Bank i.e., Delhi Bank and Infinity Bank go up and down completely randomly.
Pair Corralation between Delhi Bank and Infinity Bank
Given the investment horizon of 90 days Delhi Bank is expected to generate 8.32 times less return on investment than Infinity Bank. But when comparing it to its historical volatility, Delhi Bank Corp is 3.73 times less risky than Infinity Bank. It trades about 0.2 of its potential returns per unit of risk. Infinity Bank is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 955.00 in Infinity Bank on December 1, 2024 and sell it today you would earn a total of 79.00 from holding Infinity Bank or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delhi Bank Corp vs. Infinity Bank
Performance |
| Timeline |
| Delhi Bank Corp |
| Infinity Bank |
Delhi Bank and Infinity Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delhi Bank and Infinity Bank
The main advantage of trading using opposite Delhi Bank and Infinity Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delhi Bank position performs unexpectedly, Infinity 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 Infinity Bank will offset losses from the drop in Infinity Bank's long position.| Delhi Bank vs. CCSB Financial Corp | Delhi Bank vs. BEO Bancorp | Delhi Bank vs. First Community Financial | Delhi Bank vs. First Community |
| Infinity Bank vs. Bank Mandiri Persero | Infinity Bank vs. Century Financial Corp | Infinity Bank vs. Bank of Botetourt | Infinity Bank vs. FS Bancorp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |