Correlation Between Gillette India and ICICI Bank
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By analyzing existing cross correlation between Gillette India Limited and ICICI Bank Limited, you can compare the effects of market volatilities on Gillette India 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 Gillette India with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gillette India and ICICI Bank.
Diversification Opportunities for Gillette India and ICICI Bank
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gillette and ICICI is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gillette India 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 Gillette India 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 Gillette India 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 Gillette India i.e., Gillette India and ICICI Bank go up and down completely randomly.
Pair Corralation between Gillette India and ICICI Bank
Assuming the 90 days trading horizon Gillette India Limited is expected to under-perform the ICICI Bank. In addition to that, Gillette India is 1.94 times more volatile than ICICI Bank Limited. It trades about -0.1 of its total potential returns per unit of risk. ICICI Bank Limited is currently generating about -0.13 per unit of volatility. If you would invest 129,870 in ICICI Bank Limited on October 30, 2024 and sell it today you would lose (7,075) from holding ICICI Bank Limited or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gillette India Limited vs. ICICI Bank Limited
Performance |
| Timeline |
| Gillette India |
| ICICI Bank Limited |
Gillette India and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gillette India and ICICI Bank
The main advantage of trading using opposite Gillette India and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gillette India 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.| Gillette India vs. MRF Limited | Gillette India vs. The Orissa Minerals | Gillette India vs. Honeywell Automation India | Gillette India vs. Page Industries Limited |
| ICICI Bank vs. Yatharth Hospital Trauma | ICICI Bank vs. Teamlease Services Limited | ICICI Bank vs. UTI Asset Management | ICICI Bank vs. Silgo Retail 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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