Correlation Between Geojit Financial and ICICI Bank
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By analyzing existing cross correlation between Geojit Financial Services and ICICI Bank Limited, you can compare the effects of market volatilities on Geojit Financial 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 Geojit Financial with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geojit Financial and ICICI Bank.
Diversification Opportunities for Geojit Financial and ICICI Bank
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Geojit and ICICI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Geojit Financial Services 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 Geojit Financial 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 Geojit Financial Services 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 Geojit Financial i.e., Geojit Financial and ICICI Bank go up and down completely randomly.
Pair Corralation between Geojit Financial and ICICI Bank
Assuming the 90 days trading horizon Geojit Financial Services is expected to under-perform the ICICI Bank. In addition to that, Geojit Financial is 3.48 times more volatile than ICICI Bank Limited. It trades about -0.25 of its total potential returns per unit of risk. ICICI Bank Limited is currently generating about -0.03 per unit of volatility. If you would invest 122,525 in ICICI Bank Limited on November 27, 2024 and sell it today you would lose (690.00) from holding ICICI Bank Limited or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geojit Financial Services vs. ICICI Bank Limited
Performance |
| Timeline |
| Geojit Financial Services |
| ICICI Bank Limited |
Geojit Financial and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geojit Financial and ICICI Bank
The main advantage of trading using opposite Geojit Financial and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geojit Financial 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.| Geojit Financial vs. Lemon Tree Hotels | Geojit Financial vs. 21st Century Management | Geojit Financial vs. ITCHOTELS | Geojit Financial vs. Advani Hotels Resorts |
| ICICI Bank vs. Alkali Metals Limited | ICICI Bank vs. Shivalik Bimetal Controls | ICICI Bank vs. Fortis Healthcare Limited | ICICI Bank vs. Sarthak Metals 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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