Correlation Between DCB Bank and Akme Fintrade

Can any of the company-specific risk be diversified away by investing in both DCB Bank and Akme Fintrade 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 DCB Bank and Akme Fintrade into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DCB Bank Limited and Akme Fintrade India, you can compare the effects of market volatilities on DCB Bank and Akme Fintrade 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 DCB Bank with a short position of Akme Fintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of DCB Bank and Akme Fintrade.

Diversification Opportunities for DCB Bank and Akme Fintrade

0.13

Correlation Coefficient

DCB Bank  Akme Fintrade

Average diversification

The 3 months correlation between DCB and Akme is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding DCB Bank Limited and Akme Fintrade India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akme Fintrade India and DCB 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 DCB Bank Limited are associated (or correlated) with Akme Fintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akme Fintrade India has no effect on the direction of DCB Bank i.e., DCB Bank and Akme Fintrade go up and down completely randomly.

Pair Corralation between DCB Bank and Akme Fintrade

Assuming the 90 days trading horizon DCB Bank Limited is expected to generate 0.77 times more return on investment than Akme Fintrade. However, DCB Bank Limited is 1.3 times less risky than Akme Fintrade. It trades about 0.09 of its potential returns per unit of risk. Akme Fintrade India is currently generating about -0.03 per unit of risk. If you would invest  12,779  in DCB Bank Limited on April 24, 2025 and sell it today you would earn a total of  1,394  from holding DCB Bank Limited or generate 10.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

DCB Bank Limited  vs.  Akme Fintrade India

DCB Bank Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DCB Bank Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, DCB Bank may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Akme Fintrade India

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akme Fintrade India has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Akme Fintrade is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with DCB Bank and Akme Fintrade

The main advantage of trading using opposite DCB Bank and Akme Fintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DCB Bank position performs unexpectedly, Akme Fintrade 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 Akme Fintrade will offset losses from the drop in Akme Fintrade's long position.

The idea behind DCB Bank Limited and Akme Fintrade India pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..