Correlation Between AU Small and ICICI Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between AU Small Finance and ICICI Bank Limited, you can compare the effects of market volatilities on AU Small and ICICI 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 AU Small with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AU Small and ICICI Bank.
Diversification Opportunities for AU Small and ICICI Bank
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between AUBANK and ICICI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding AU Small Finance and ICICI Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Bank Limited and AU Small 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 AU Small Finance are associated (or correlated) with ICICI Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Bank Limited has no effect on the direction of AU Small i.e., AU Small and ICICI Bank go up and down completely randomly.
Pair Corralation between AU Small and ICICI Bank
Assuming the 90 days trading horizon AU Small Finance is expected to under-perform the ICICI Bank. In addition to that, AU Small is 1.2 times more volatile than ICICI Bank Limited. It trades about -0.12 of its total potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.03 per unit of volatility. If you would invest 129,440 in ICICI Bank Limited on August 27, 2024 and sell it today you would earn a total of 655.00 from holding ICICI Bank Limited or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AU Small Finance vs. ICICI Bank Limited
Performance |
| Timeline |
| AU Small Finance |
| ICICI Bank Limited |
AU Small and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AU Small and ICICI Bank
The main advantage of trading using opposite AU Small and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AU Small position performs unexpectedly, ICICI 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 ICICI Bank will offset losses from the drop in ICICI Bank's long position.| AU Small vs. Lakshmi Finance Industrial | AU Small vs. MEDI ASSIST HEALTHCARE | AU Small vs. Global Health Limited | AU Small vs. Shivalik Bimetal Controls |
| ICICI Bank vs. Imagicaaworld Entertainment Limited | ICICI Bank vs. Sonata Software Limited | ICICI Bank vs. Tata Communications Limited | ICICI Bank vs. Datamatics Global Services |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Directory Find actively traded commodities issued by global exchanges |