Correlation Between Bajaj Holdings and ICICI Lombard
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By analyzing existing cross correlation between Bajaj Holdings Investment and ICICI Lombard General, you can compare the effects of market volatilities on Bajaj Holdings and ICICI Lombard 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 Bajaj Holdings with a short position of ICICI Lombard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and ICICI Lombard.
Diversification Opportunities for Bajaj Holdings and ICICI Lombard
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bajaj and ICICI is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and ICICI Lombard General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Lombard General and Bajaj Holdings 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 Bajaj Holdings Investment are associated (or correlated) with ICICI Lombard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Lombard General has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and ICICI Lombard go up and down completely randomly.
Pair Corralation between Bajaj Holdings and ICICI Lombard
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 1.21 times more return on investment than ICICI Lombard. However, Bajaj Holdings is 1.21 times more volatile than ICICI Lombard General. It trades about 0.13 of its potential returns per unit of risk. ICICI Lombard General is currently generating about 0.11 per unit of risk. If you would invest 1,073,815 in Bajaj Holdings Investment on September 13, 2024 and sell it today you would earn a total of 42,960 from holding Bajaj Holdings Investment or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. ICICI Lombard General
Performance |
| Timeline |
| Bajaj Holdings Investment |
| ICICI Lombard General |
Bajaj Holdings and ICICI Lombard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and ICICI Lombard
The main advantage of trading using opposite Bajaj Holdings and ICICI Lombard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, ICICI Lombard 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 Lombard will offset losses from the drop in ICICI Lombard's long position.| Bajaj Holdings vs. MRF Limited | Bajaj Holdings vs. JSW Holdings Limited | Bajaj Holdings vs. Maharashtra Scooters Limited | Bajaj Holdings vs. Nalwa Sons Investments |
| ICICI Lombard vs. Dhampur Bio Organics | ICICI Lombard vs. Som Distilleries Breweries | ICICI Lombard vs. Mrs Bectors Food | ICICI Lombard vs. Hindustan Foods Limited |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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