Correlation Between GTL and ICICI Prudential
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By analyzing existing cross correlation between GTL Limited and ICICI Prudential Nifty, you can compare the effects of market volatilities on GTL 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 GTL with a short position of ICICI Prudential. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTL and ICICI Prudential.
Diversification Opportunities for GTL and ICICI Prudential
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GTL and ICICI is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding GTL Limited and ICICI Prudential Nifty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Prudential Nifty and GTL 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 GTL Limited 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 Nifty has no effect on the direction of GTL i.e., GTL and ICICI Prudential go up and down completely randomly.
Pair Corralation between GTL and ICICI Prudential
Assuming the 90 days trading horizon GTL Limited is expected to generate 2.81 times more return on investment than ICICI Prudential. However, GTL is 2.81 times more volatile than ICICI Prudential Nifty. It trades about 0.0 of its potential returns per unit of risk. ICICI Prudential Nifty is currently generating about -0.01 per unit of risk. If you would invest 1,305 in GTL Limited on September 4, 2024 and sell it today you would lose (10.00) from holding GTL Limited or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTL Limited vs. ICICI Prudential Nifty
Performance |
| Timeline |
| GTL Limited |
| ICICI Prudential Nifty |
GTL and ICICI Prudential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTL and ICICI Prudential
The main advantage of trading using opposite GTL and ICICI Prudential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTL 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.| GTL vs. Transport of | GTL vs. MIRC Electronics Limited | GTL vs. Advani Hotels Resorts | GTL vs. Samhi Hotels Limited |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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