Correlation Between COSMO FIRST and ICICI Bank
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By analyzing existing cross correlation between COSMO FIRST LIMITED and ICICI Bank Limited, you can compare the effects of market volatilities on COSMO FIRST 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 COSMO FIRST with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMO FIRST and ICICI Bank.
Diversification Opportunities for COSMO FIRST and ICICI Bank
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COSMO and ICICI is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding COSMO FIRST 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 COSMO FIRST 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 COSMO FIRST 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 COSMO FIRST i.e., COSMO FIRST and ICICI Bank go up and down completely randomly.
Pair Corralation between COSMO FIRST and ICICI Bank
Assuming the 90 days trading horizon COSMO FIRST LIMITED is expected to generate 2.16 times more return on investment than ICICI Bank. However, COSMO FIRST is 2.16 times more volatile than ICICI Bank Limited. It trades about 0.06 of its potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.1 per unit of risk. If you would invest 63,924 in COSMO FIRST LIMITED on September 24, 2024 and sell it today you would earn a total of 31,481 from holding COSMO FIRST LIMITED or generate 49.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.65% |
| Values | Daily Returns |
COSMO FIRST LIMITED vs. ICICI Bank Limited
Performance |
| Timeline |
| COSMO FIRST LIMITED |
| ICICI Bank Limited |
COSMO FIRST and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COSMO FIRST and ICICI Bank
The main advantage of trading using opposite COSMO FIRST and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMO FIRST 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.| COSMO FIRST vs. Kohinoor Foods Limited | COSMO FIRST vs. Action Construction Equipment | COSMO FIRST vs. LT Foods Limited | COSMO FIRST vs. Shyam Metalics and |
| ICICI Bank vs. Kingfa Science Technology | ICICI Bank vs. Rico Auto Industries | ICICI Bank vs. GACM Technologies Limited | ICICI Bank vs. COSMO FIRST 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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