Correlation Between ICICI Bank and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both ICICI Bank and JSC Halyk 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 JSC Halyk 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 JSC Halyk bank, you can compare the effects of market volatilities on ICICI Bank and JSC Halyk 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 JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and JSC Halyk.
Diversification Opportunities for ICICI Bank and JSC Halyk
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and JSC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank 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 JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of ICICI Bank i.e., ICICI Bank and JSC Halyk go up and down completely randomly.
Pair Corralation between ICICI Bank and JSC Halyk
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.47 times more return on investment than JSC Halyk. However, ICICI Bank Limited is 2.14 times less risky than JSC Halyk. It trades about 0.11 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.02 per unit of risk. If you would invest 2,820 in ICICI Bank Limited on September 13, 2024 and sell it today you would earn a total of 120.00 from holding ICICI Bank Limited or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. JSC Halyk bank
Performance |
| Timeline |
| ICICI Bank Limited |
| JSC Halyk bank |
ICICI Bank and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and JSC Halyk
The main advantage of trading using opposite ICICI Bank and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.| ICICI Bank vs. MBANK | ICICI Bank vs. ALIOR BANK | ICICI Bank vs. Lifeway Foods | ICICI Bank vs. INDOFOOD AGRI RES |
| JSC Halyk vs. China Merchants Bank | JSC Halyk vs. HDFC Bank Limited | JSC Halyk vs. ICICI Bank Limited | JSC Halyk vs. PT Bank Central |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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