Correlation Between Lewis Clark and Delhi Bank
Can any of the company-specific risk be diversified away by investing in both Lewis Clark and Delhi 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 Lewis Clark and Delhi Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lewis Clark Bancorp and Delhi Bank Corp, you can compare the effects of market volatilities on Lewis Clark and Delhi 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 Lewis Clark with a short position of Delhi Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lewis Clark and Delhi Bank.
Diversification Opportunities for Lewis Clark and Delhi Bank
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lewis and Delhi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lewis Clark Bancorp and Delhi Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delhi Bank Corp and Lewis Clark 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 Lewis Clark Bancorp are associated (or correlated) with Delhi Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delhi Bank Corp has no effect on the direction of Lewis Clark i.e., Lewis Clark and Delhi Bank go up and down completely randomly.
Pair Corralation between Lewis Clark and Delhi Bank
Given the investment horizon of 90 days Lewis Clark Bancorp is expected to generate 3.34 times more return on investment than Delhi Bank. However, Lewis Clark is 3.34 times more volatile than Delhi Bank Corp. It trades about 0.25 of its potential returns per unit of risk. Delhi Bank Corp is currently generating about 0.03 per unit of risk. If you would invest 2,100 in Lewis Clark Bancorp on September 2, 2024 and sell it today you would earn a total of 900.00 from holding Lewis Clark Bancorp or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Lewis Clark Bancorp vs. Delhi Bank Corp
Performance |
| Timeline |
| Lewis Clark Bancorp |
| Delhi Bank Corp |
Lewis Clark and Delhi Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lewis Clark and Delhi Bank
The main advantage of trading using opposite Lewis Clark and Delhi Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lewis Clark position performs unexpectedly, Delhi 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 Delhi Bank will offset losses from the drop in Delhi Bank's long position.| Lewis Clark vs. China Clean Energy | Lewis Clark vs. Titan Machinery | Lewis Clark vs. Tradeweb Markets | Lewis Clark vs. Simon Property Group |
| Delhi Bank vs. Piraeus Bank SA | Delhi Bank vs. Turkiye Garanti Bankasi | Delhi Bank 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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