Correlation Between Dana and Icici
Can any of the company-specific risk be diversified away by investing in both Dana and Icici at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dana and Icici into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dana Inc and Icici, you can compare the effects of market volatilities on Dana and Icici 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 Dana with a short position of Icici. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and Icici.
Diversification Opportunities for Dana and Icici
Pay attention - limited upside
The 3 months correlation between Dana and Icici is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and Icici in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icici and Dana 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 Dana Inc are associated (or correlated) with Icici. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icici has no effect on the direction of Dana i.e., Dana and Icici go up and down completely randomly.
Pair Corralation between Dana and Icici
If you would invest 0.00 in Icici on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Icici or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Dana Inc vs. Icici
Performance |
| Timeline |
| Dana Inc |
| Icici |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Dana and Icici Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and Icici
The main advantage of trading using opposite Dana and Icici positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana position performs unexpectedly, Icici 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 will offset losses from the drop in Icici's long position.The idea behind Dana Inc and Icici pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Icici vs. United Fire Group | Icici vs. Kinsale Capital Group | Icici vs. U Power Limited | Icici vs. Assurant |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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