Correlation Between GM and ICICI Prudential
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By analyzing existing cross correlation between General Motors and ICICI Prudential Amc, you can compare the effects of market volatilities on GM and ICICI Prudential 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 GM with a short position of ICICI Prudential. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and ICICI Prudential.
Diversification Opportunities for GM and ICICI Prudential
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and ICICI is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and ICICI Prudential Amc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Prudential Amc and GM 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 General Motors are associated (or correlated) with ICICI Prudential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Prudential Amc has no effect on the direction of GM i.e., GM and ICICI Prudential go up and down completely randomly.
Pair Corralation between GM and ICICI Prudential
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.23 times more return on investment than ICICI Prudential. However, General Motors is 4.4 times less risky than ICICI Prudential. It trades about 0.1 of its potential returns per unit of risk. ICICI Prudential Amc is currently generating about -0.13 per unit of risk. If you would invest 4,829 in General Motors on September 3, 2024 and sell it today you would earn a total of 730.00 from holding General Motors or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 96.88% |
| Values | Daily Returns |
General Motors vs. ICICI Prudential Amc
Performance |
| Timeline |
| General Motors |
| ICICI Prudential Amc |
GM and ICICI Prudential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and ICICI Prudential
The main advantage of trading using opposite GM and ICICI Prudential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, ICICI Prudential 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 Prudential will offset losses from the drop in ICICI Prudential's long position.The idea behind General Motors and ICICI Prudential Amc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ICICI Prudential vs. Kingfa Science Technology | ICICI Prudential vs. GTL Limited | ICICI Prudential vs. Agro Phos India | ICICI Prudential vs. Indo Amines 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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