Correlation Between DCB Bank and First Bancorp
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By analyzing existing cross correlation between DCB Bank Limited and First Bancorp, you can compare the effects of market volatilities on DCB Bank and First Bancorp 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 First Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of DCB Bank and First Bancorp.
Diversification Opportunities for DCB Bank and First Bancorp
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DCB and First is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding DCB Bank Limited and First Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancorp 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 First Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancorp has no effect on the direction of DCB Bank i.e., DCB Bank and First Bancorp go up and down completely randomly.
Pair Corralation between DCB Bank and First Bancorp
Assuming the 90 days trading horizon DCB Bank Limited is expected to generate 1.48 times more return on investment than First Bancorp. However, DCB Bank is 1.48 times more volatile than First Bancorp. It trades about 0.24 of its potential returns per unit of risk. First Bancorp is currently generating about -0.02 per unit of risk. If you would invest 12,274 in DCB Bank Limited on August 15, 2025 and sell it today you would earn a total of 4,959 from holding DCB Bank Limited or generate 40.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
DCB Bank Limited vs. First Bancorp
Performance |
| Timeline |
| DCB Bank Limited |
| First Bancorp |
DCB Bank and First Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DCB Bank and First Bancorp
The main advantage of trading using opposite DCB Bank and First Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DCB Bank position performs unexpectedly, First Bancorp 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 First Bancorp will offset losses from the drop in First Bancorp's long position.| DCB Bank vs. Speciality Restaurants Limited | DCB Bank vs. Dev Information Technology | DCB Bank vs. Himadri Speciality Chemical | DCB Bank vs. Indo Rama Synthetics |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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