Correlation Between Eros International and ICICI Bank
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By analyzing existing cross correlation between Eros International Media and ICICI Bank Limited, you can compare the effects of market volatilities on Eros International 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 Eros International with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros International and ICICI Bank.
Diversification Opportunities for Eros International and ICICI Bank
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eros and ICICI is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eros International Media 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 Eros International 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 Eros International Media 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 Eros International i.e., Eros International and ICICI Bank go up and down completely randomly.
Pair Corralation between Eros International and ICICI Bank
Assuming the 90 days trading horizon Eros International Media is expected to under-perform the ICICI Bank. In addition to that, Eros International is 2.74 times more volatile than ICICI Bank Limited. It trades about -0.04 of its total potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.08 per unit of volatility. If you would invest 85,236 in ICICI Bank Limited on November 7, 2024 and sell it today you would earn a total of 41,584 from holding ICICI Bank Limited or generate 48.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Eros International Media vs. ICICI Bank Limited
Performance |
| Timeline |
| Eros International Media |
| ICICI Bank Limited |
Eros International and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros International and ICICI Bank
The main advantage of trading using opposite Eros International and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros International 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.| Eros International vs. Data Patterns Limited | Eros International vs. ILFS Investment Managers | Eros International vs. Transport of | Eros International vs. Navneet Education Limited |
| ICICI Bank vs. Spencers Retail Limited | ICICI Bank vs. Zota Health Care | ICICI Bank vs. V2 Retail Limited | ICICI Bank vs. Apollo Hospitals Enterprise |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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