Correlation Between BF Investment and ICICI Bank
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By analyzing existing cross correlation between BF Investment Limited and ICICI Bank Limited, you can compare the effects of market volatilities on BF Investment 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 BF Investment with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and ICICI Bank.
Diversification Opportunities for BF Investment and ICICI Bank
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BFINVEST and ICICI is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited 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 BF Investment 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 BF Investment Limited 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 BF Investment i.e., BF Investment and ICICI Bank go up and down completely randomly.
Pair Corralation between BF Investment and ICICI Bank
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 2.35 times more return on investment than ICICI Bank. However, BF Investment is 2.35 times more volatile than ICICI Bank Limited. It trades about 0.12 of its potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.07 per unit of risk. If you would invest 58,440 in BF Investment Limited on August 25, 2024 and sell it today you would earn a total of 13,870 from holding BF Investment Limited or generate 23.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
BF Investment Limited vs. ICICI Bank Limited
Performance |
| Timeline |
| BF Investment Limited |
| ICICI Bank Limited |
BF Investment and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and ICICI Bank
The main advantage of trading using opposite BF Investment and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment 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.| BF Investment vs. Reliance Industries Limited | BF Investment vs. State Bank of | BF Investment vs. HDFC Bank Limited | BF Investment vs. Oil Natural Gas |
| ICICI Bank vs. Jindal Steel Power | ICICI Bank vs. Steelcast Limited | ICICI Bank vs. Tube Investments of | ICICI Bank vs. BF Investment 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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