Correlation Between ICICI Bank and Apollo Hospitals
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By analyzing existing cross correlation between ICICI Bank Limited and Apollo Hospitals Enterprise, you can compare the effects of market volatilities on ICICI Bank and Apollo Hospitals 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 Apollo Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Apollo Hospitals.
Diversification Opportunities for ICICI Bank and Apollo Hospitals
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and Apollo is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Apollo Hospitals Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Hospitals Ent 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 Apollo Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Hospitals Ent has no effect on the direction of ICICI Bank i.e., ICICI Bank and Apollo Hospitals go up and down completely randomly.
Pair Corralation between ICICI Bank and Apollo Hospitals
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.75 times more return on investment than Apollo Hospitals. However, ICICI Bank Limited is 1.34 times less risky than Apollo Hospitals. It trades about 0.05 of its potential returns per unit of risk. Apollo Hospitals Enterprise is currently generating about -0.04 per unit of risk. If you would invest 127,395 in ICICI Bank Limited on August 30, 2024 and sell it today you would earn a total of 2,675 from holding ICICI Bank Limited or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Apollo Hospitals Enterprise
Performance |
| Timeline |
| ICICI Bank Limited |
| Apollo Hospitals Ent |
ICICI Bank and Apollo Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Apollo Hospitals
The main advantage of trading using opposite ICICI Bank and Apollo Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Apollo Hospitals 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 Apollo Hospitals will offset losses from the drop in Apollo Hospitals' long position.| ICICI Bank vs. Computer Age Management | ICICI Bank vs. FCS Software Solutions | ICICI Bank vs. Parag Milk Foods | ICICI Bank vs. Hindustan Foods Limited |
| Apollo Hospitals vs. State Bank of | Apollo Hospitals vs. Life Insurance | Apollo Hospitals vs. HDFC Bank Limited | Apollo Hospitals vs. ICICI Bank 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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