Correlation Between Bharti Airtel and ICICI Bank
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By analyzing existing cross correlation between Bharti Airtel Limited and ICICI Bank Limited, you can compare the effects of market volatilities on Bharti Airtel 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 Bharti Airtel with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bharti Airtel and ICICI Bank.
Diversification Opportunities for Bharti Airtel and ICICI Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bharti and ICICI is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bharti Airtel 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 Bharti Airtel 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 Bharti Airtel 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 Bharti Airtel i.e., Bharti Airtel and ICICI Bank go up and down completely randomly.
Pair Corralation between Bharti Airtel and ICICI Bank
Assuming the 90 days trading horizon Bharti Airtel is expected to generate 6.07 times less return on investment than ICICI Bank. But when comparing it to its historical volatility, Bharti Airtel Limited is 1.11 times less risky than ICICI Bank. It trades about 0.02 of its potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 122,275 in ICICI Bank Limited on August 29, 2024 and sell it today you would earn a total of 8,220 from holding ICICI Bank Limited or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Bharti Airtel Limited vs. ICICI Bank Limited
Performance |
| Timeline |
| Bharti Airtel Limited |
| ICICI Bank Limited |
Bharti Airtel and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bharti Airtel and ICICI Bank
The main advantage of trading using opposite Bharti Airtel and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bharti Airtel 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.| Bharti Airtel vs. Paramount Communications Limited | Bharti Airtel vs. PYRAMID TECHNOPLAST ORD | Bharti Airtel vs. Mtar Technologies Limited | Bharti Airtel vs. PB Fintech Limited |
| ICICI Bank vs. CSB Bank Limited | ICICI Bank vs. Teamlease Services Limited | ICICI Bank vs. DCB Bank Limited | ICICI Bank vs. Karur Vysya Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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