Correlation Between ICICI Bank and Japan Post
Can any of the company-specific risk be diversified away by investing in both ICICI Bank and Japan Post 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 Japan Post 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 Japan Post Holdings, you can compare the effects of market volatilities on ICICI Bank and Japan Post 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 Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Japan Post.
Diversification Opportunities for ICICI Bank and Japan Post
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICICI and Japan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Japan Post Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Holdings 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 Japan Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Post Holdings has no effect on the direction of ICICI Bank i.e., ICICI Bank and Japan Post go up and down completely randomly.
Pair Corralation between ICICI Bank and Japan Post
If you would invest 1,036 in Japan Post Holdings on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Japan Post Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Japan Post Holdings
Performance |
| Timeline |
| ICICI Bank Limited |
| Japan Post Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ICICI Bank and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Japan Post
The main advantage of trading using opposite ICICI Bank and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Japan Post 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 Japan Post will offset losses from the drop in Japan Post's long position.| ICICI Bank vs. US Bancorp | ICICI Bank vs. US Bancorp | ICICI Bank vs. KB Financial Group | ICICI Bank vs. Itau Unibanco Banco |
| Japan Post vs. Huntington Bancshares Incorporated | Japan Post vs. Fifth Third Bancorp | Japan Post vs. MT Bank | Japan Post vs. Citizens Financial Group, |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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