Correlation Between Icici Prudential and SBI Mutual
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By analyzing existing cross correlation between Icici Prudential Nifty and SBI Mutual Fund, you can compare the effects of market volatilities on Icici Prudential and SBI Mutual 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 Icici Prudential with a short position of SBI Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icici Prudential and SBI Mutual.
Diversification Opportunities for Icici Prudential and SBI Mutual
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Icici and SBI is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Icici Prudential Nifty and SBI Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Mutual Fund and Icici Prudential 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 Icici Prudential Nifty are associated (or correlated) with SBI Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Mutual Fund has no effect on the direction of Icici Prudential i.e., Icici Prudential and SBI Mutual go up and down completely randomly.
Pair Corralation between Icici Prudential and SBI Mutual
Assuming the 90 days trading horizon Icici Prudential Nifty is expected to under-perform the SBI Mutual. But the etf apears to be less risky and, when comparing its historical volatility, Icici Prudential Nifty is 1.19 times less risky than SBI Mutual. The etf trades about -0.07 of its potential returns per unit of risk. The SBI Mutual Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 25,423 in SBI Mutual Fund on September 4, 2024 and sell it today you would earn a total of 237.00 from holding SBI Mutual Fund or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icici Prudential Nifty vs. SBI Mutual Fund
Performance |
| Timeline |
| Icici Prudential Nifty |
| SBI Mutual Fund |
Icici Prudential and SBI Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icici Prudential and SBI Mutual
The main advantage of trading using opposite Icici Prudential and SBI Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icici Prudential position performs unexpectedly, SBI Mutual 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 SBI Mutual will offset losses from the drop in SBI Mutual's long position.| Icici Prudential vs. SBI Mutual Fund | Icici Prudential vs. Kotak Mahindra Mutual | Icici Prudential vs. HDFC Nifty Smallcap |
| SBI Mutual vs. Kotak Mahindra Mutual | SBI Mutual vs. HDFC Nifty Smallcap | SBI Mutual vs. Icici Prudential Nifty |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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