Delta of a stock


whats the delta of banknifty towards nifty?
whats the delta of banknifty stocks towards bankknifty index?
whats the delta of nifty stocks towards nifty index?

For example kotak bank out performed bank nifty so the delta of kotak with respect to bank nifty will be above 1.
Greater than 1 - Out performance
Equal to 0 - similar to general market.
Less than 1 - under formed

isn’t this the definition of Beta or correlation factor ?

1 Like

Beta refers to the volatility.
High beta stocks are more volatile then the general market.

@Prayag can you

From what I understand

You cannot have delta between a stock and index. It won’t move the same way all the time.

Delta between spot and future is very close to one.
So. Bank nifty and bank nifty futures is very close to 1.

Delta of a stock is used to compare the under performance or out performance of a stock with respect to a index. It is historical.

Formula for Alpha

Mostly it’ll be 1. There is no need to find that.