Correlation Between Foods Inns and ICICI Lombard
Specify exactly 2 symbols:
By analyzing existing cross correlation between Foods Inns Limited and ICICI Lombard General, you can compare the effects of market volatilities on Foods Inns and ICICI Lombard 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 Foods Inns with a short position of ICICI Lombard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foods Inns and ICICI Lombard.
Diversification Opportunities for Foods Inns and ICICI Lombard
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Foods and ICICI is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Foods Inns Limited and ICICI Lombard General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Lombard General and Foods Inns 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 Foods Inns Limited are associated (or correlated) with ICICI Lombard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Lombard General has no effect on the direction of Foods Inns i.e., Foods Inns and ICICI Lombard go up and down completely randomly.
Pair Corralation between Foods Inns and ICICI Lombard
Assuming the 90 days trading horizon Foods Inns is expected to generate 2.07 times less return on investment than ICICI Lombard. In addition to that, Foods Inns is 2.07 times more volatile than ICICI Lombard General. It trades about 0.02 of its total potential returns per unit of risk. ICICI Lombard General is currently generating about 0.08 per unit of volatility. If you would invest 122,058 in ICICI Lombard General on September 14, 2024 and sell it today you would earn a total of 74,077 from holding ICICI Lombard General or generate 60.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foods Inns Limited vs. ICICI Lombard General
Performance |
| Timeline |
| Foods Inns Limited |
| ICICI Lombard General |
Foods Inns and ICICI Lombard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foods Inns and ICICI Lombard
The main advantage of trading using opposite Foods Inns and ICICI Lombard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foods Inns position performs unexpectedly, ICICI Lombard 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 Lombard will offset losses from the drop in ICICI Lombard's long position.| Foods Inns vs. Nestle India Limited | Foods Inns vs. Britannia Industries Limited | Foods Inns vs. TATA SUMER PRODUCTS | Foods Inns vs. Patanjali Foods Limited |
| ICICI Lombard vs. Patanjali Foods Limited | ICICI Lombard vs. Embassy Office Parks | ICICI Lombard vs. Foods Inns Limited | ICICI Lombard vs. Navneet Education 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |