Correlation Between ICICI Bank and Credit Acceptance
Can any of the company-specific risk be diversified away by investing in both ICICI Bank and Credit Acceptance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ICICI Bank and Credit Acceptance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICICI Bank Limited and Credit Acceptance, you can compare the effects of market volatilities on ICICI Bank and Credit Acceptance 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 ICICI Bank with a short position of Credit Acceptance. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Credit Acceptance.
Diversification Opportunities for ICICI Bank and Credit Acceptance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ICICI and Credit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Credit Acceptance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Acceptance and ICICI Bank 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 ICICI Bank Limited are associated (or correlated) with Credit Acceptance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Acceptance has no effect on the direction of ICICI Bank i.e., ICICI Bank and Credit Acceptance go up and down completely randomly.
Pair Corralation between ICICI Bank and Credit Acceptance
If you would invest 32,500 in Credit Acceptance on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Credit Acceptance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
ICICI Bank Limited vs. Credit Acceptance
Performance |
| Timeline |
| ICICI Bank Limited |
| Credit Acceptance |
ICICI Bank and Credit Acceptance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Credit Acceptance
The main advantage of trading using opposite ICICI Bank and Credit Acceptance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Credit Acceptance 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 Credit Acceptance will offset losses from the drop in Credit Acceptance's long position.| ICICI Bank vs. Taiwan Semiconductor Manufacturing | ICICI Bank vs. Apple Inc | ICICI Bank vs. Alibaba Group Holding | ICICI Bank vs. Microsoft |
| Credit Acceptance vs. Patria Investments Limited | Credit Acceptance vs. Cardinal Health, | Credit Acceptance vs. Take Two Interactive Software | Credit Acceptance vs. HCA Healthcare, |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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