Correlation Between ICICI Bank and Aptech
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By analyzing existing cross correlation between ICICI Bank Limited and Aptech Limited, you can compare the effects of market volatilities on ICICI Bank and Aptech 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 Aptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Aptech.
Diversification Opportunities for ICICI Bank and Aptech
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and Aptech is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Aptech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptech Limited 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 Aptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptech Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Aptech go up and down completely randomly.
Pair Corralation between ICICI Bank and Aptech
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.27 times more return on investment than Aptech. However, ICICI Bank Limited is 3.76 times less risky than Aptech. It trades about 0.07 of its potential returns per unit of risk. Aptech Limited is currently generating about 0.01 per unit of risk. If you would invest 90,560 in ICICI Bank Limited on September 4, 2024 and sell it today you would earn a total of 39,905 from holding ICICI Bank Limited or generate 44.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ICICI Bank Limited vs. Aptech Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Aptech Limited |
ICICI Bank and Aptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Aptech
The main advantage of trading using opposite ICICI Bank and Aptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Aptech 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 Aptech will offset losses from the drop in Aptech's long position.| ICICI Bank vs. Dev Information Technology | ICICI Bank vs. Mangalam Drugs And | ICICI Bank vs. Elin Electronics Limited | ICICI Bank vs. R S Software |
| Aptech vs. HMT Limited | Aptech vs. KIOCL Limited | Aptech vs. Spentex Industries Limited | Aptech vs. Punjab Sind Bank |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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