Correlation Between Elin Electronics and ICICI Bank
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By analyzing existing cross correlation between Elin Electronics Limited and ICICI Bank Limited, you can compare the effects of market volatilities on Elin Electronics 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 Elin Electronics with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elin Electronics and ICICI Bank.
Diversification Opportunities for Elin Electronics and ICICI Bank
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elin and ICICI is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Elin Electronics 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 Elin Electronics 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 Elin Electronics 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 Elin Electronics i.e., Elin Electronics and ICICI Bank go up and down completely randomly.
Pair Corralation between Elin Electronics and ICICI Bank
Assuming the 90 days trading horizon Elin Electronics Limited is expected to under-perform the ICICI Bank. In addition to that, Elin Electronics is 2.07 times more volatile than ICICI Bank Limited. It trades about -0.07 of its total potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.07 per unit of volatility. If you would invest 123,480 in ICICI Bank Limited on September 4, 2024 and sell it today you would earn a total of 6,985 from holding ICICI Bank Limited or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Elin Electronics Limited vs. ICICI Bank Limited
Performance |
| Timeline |
| Elin Electronics |
| ICICI Bank Limited |
Elin Electronics and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elin Electronics and ICICI Bank
The main advantage of trading using opposite Elin Electronics and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elin Electronics 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.| Elin Electronics vs. Zodiac Clothing | Elin Electronics vs. Credo Brands Marketing | Elin Electronics vs. FCS Software Solutions | Elin Electronics vs. GM Breweries Limited |
| ICICI Bank vs. Dev Information Technology | ICICI Bank vs. Mangalam Drugs And | ICICI Bank vs. Elin Electronics Limited | ICICI Bank vs. R S Software |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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