Will IShares Core (USA Stocks:IJR) and HDFC Bank (USA Stocks:HDB) deliver in February?

HDB Stock  USD 67.48  0.38  0.57%   
It looks like IShares Core will continue to recover much faster as its share price surged up 0.62% today to HDFC Bank's 1.23%. As many rational traders are trying to avoid banks space, it makes sense to go over HDFC Bank Limited a little further and understand how it stands against IShares Core and other similar entities. We are going to analyze some of the competitive aspects of both HDFC Bank and IShares.
Published over three weeks ago
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By analyzing existing fundamental indicators between HDFC Bank and IShares, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in IShares with a short position in HDFC Bank. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. HDFC Bank has an asset utilization ratio of 4.83 percent. This suggests that the company is making $0.0483 for each dollar of assets. An increasing asset utilization means that HDFC Bank Limited is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as HDFC Bank or Mitsubishi is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending HDFC Bank dividends

A dividend is the distribution of a portion of HDFC Bank earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. HDFC Bank dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. HDFC Bank one year expected dividend income is about USD0.28 per share.
Investing in stocks that pay dividends, such as stock of HDFC Bank Limited, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in HDFC Bank must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for HDFC Bank. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is HDFC Bank's Liquidity

HDFC Bank financial leverage refers to using borrowed capital as a funding source to finance HDFC Bank Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HDFC Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between HDFC Bank's total debt and its cash.

Correlation Between HDFC Bank and Mitsubishi UFJ Financial

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding HDFC Bank together with similar or unrelated positions with a negative correlation. For example, you can also add Mitsubishi UFJ to your portfolio. If Mitsubishi UFJ is not perfectly correlated to HDFC Bank it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When HDFC Bank, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between HDB and MUFG for more information.

Note

Are you currently holding both HDFC Bank and Mitsubishi UFJ in your portfolio?
Please note if you are using this as a pair-trade strategy between HDFC Bank and Mitsubishi UFJ, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Is HDFC Bank valued fairly by the market?

Earnings Per Share Breakdown

Lets now check HDFC Bank earnings per share. According to the company disclosure, HDFC Bank Limited has an Earnings Per Share of 2.55 times. This is 8.93% lower than that of the Banks sector and significantly higher than that of the Financials industry. The earnings per share for all United States stocks is 18.27% higher than that of the firm. As for IShares Core we see earnings per share of 8.66 X, which is much higher than that of the Financials

HDFC Bank2.55
Sector0.0
IShares8.66
2.55
HDFC Bank
Sector
8.66
IShares

Will HDFC Bank pull back in February 2023?

Variance is down to 1.89. It may suggest a possible volatility slip.
As of the 13th of January 2023, HDFC Bank retains the Semi Deviation of 1.16, market risk adjusted performance of 0.3476, and Risk Adjusted Performance of 0.1973. HDFC Bank technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down nineteen technical drivers for HDFC Bank Limited, which can be compared to its competitors. Please check out HDFC Bank Limited information ratio, value at risk, and the relationship between the standard deviation and treynor ratio to decide if HDFC Bank is priced more or less accurately, providing market reflects its last-minute price of 67.52 per share. Given that HDFC Bank Limited has jensen alpha of 0.0669, we strongly advise you to confirm HDFC Bank Limited's regular market performance to make sure the company can sustain itself in the future.

Our Bottom Line On HDFC Bank Limited

Whereas other companies within the banks—regional industry are still a little expensive, even after the recent corrections, HDFC Bank may offer a potential longer-term growth to investors. To conclude, as of the 13th of January 2023, we believe that at this point, HDFC Bank is undervalued with below average chance of bankruptcy within the next 2 years. Our primary buy-hold-sell advice on the company is Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of HDFC Bank Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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