Correlation Between ICICI Bank and Aries Agro
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By analyzing existing cross correlation between ICICI Bank Limited and Aries Agro Limited, you can compare the effects of market volatilities on ICICI Bank and Aries Agro 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 Aries Agro. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Aries Agro.
Diversification Opportunities for ICICI Bank and Aries Agro
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and Aries is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Aries Agro Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aries Agro 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 Aries Agro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aries Agro Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Aries Agro go up and down completely randomly.
Pair Corralation between ICICI Bank and Aries Agro
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Aries Agro. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 3.24 times less risky than Aries Agro. The stock trades about -0.05 of its potential returns per unit of risk. The Aries Agro Limited is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 25,205 in Aries Agro Limited on August 27, 2024 and sell it today you would earn a total of 6,310 from holding Aries Agro Limited or generate 25.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Aries Agro Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Aries Agro Limited |
ICICI Bank and Aries Agro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Aries Agro
The main advantage of trading using opposite ICICI Bank and Aries Agro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Aries Agro 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 Aries Agro will offset losses from the drop in Aries Agro's long position.| ICICI Bank vs. Varun Beverages Limited | ICICI Bank vs. Thirumalai Chemicals Limited | ICICI Bank vs. Associated Alcohols Breweries | ICICI Bank vs. Sukhjit Starch Chemicals |
| Aries Agro vs. NMDC Limited | Aries Agro vs. Steel Authority of | Aries Agro vs. Embassy Office Parks | Aries Agro vs. Gujarat Narmada Valley |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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