Correlation Between Delhi Bank and MNB Holdings
Can any of the company-specific risk be diversified away by investing in both Delhi Bank and MNB Holdings 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 MNB Holdings 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 MNB Holdings Corp, you can compare the effects of market volatilities on Delhi Bank and MNB Holdings 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 MNB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delhi Bank and MNB Holdings.
Diversification Opportunities for Delhi Bank and MNB Holdings
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Delhi and MNB is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Delhi Bank Corp and MNB Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNB Holdings Corp 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 MNB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNB Holdings Corp has no effect on the direction of Delhi Bank i.e., Delhi Bank and MNB Holdings go up and down completely randomly.
Pair Corralation between Delhi Bank and MNB Holdings
Given the investment horizon of 90 days Delhi Bank Corp is expected to generate 0.27 times more return on investment than MNB Holdings. However, Delhi Bank Corp is 3.77 times less risky than MNB Holdings. It trades about 0.0 of its potential returns per unit of risk. MNB Holdings Corp is currently generating about -0.05 per unit of risk. If you would invest 2,050 in Delhi Bank Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Delhi Bank Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Delhi Bank Corp vs. MNB Holdings Corp
Performance |
| Timeline |
| Delhi Bank Corp |
| MNB Holdings Corp |
Delhi Bank and MNB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delhi Bank and MNB Holdings
The main advantage of trading using opposite Delhi Bank and MNB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delhi Bank position performs unexpectedly, MNB Holdings 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 MNB Holdings will offset losses from the drop in MNB Holdings' long position.| Delhi Bank vs. Piraeus Bank SA | Delhi Bank vs. Turkiye Garanti Bankasi | Delhi Bank vs. Uwharrie Capital Corp |
| MNB Holdings vs. Harbor Bankshares | MNB Holdings vs. Oconee Financial | MNB Holdings vs. Mission Valley Bancorp | MNB Holdings vs. MF 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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