Correlation Between ICICI Bank and Asian Hotels
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By analyzing existing cross correlation between ICICI Bank Limited and Asian Hotels Limited, you can compare the effects of market volatilities on ICICI Bank and Asian Hotels 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 Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Asian Hotels.
Diversification Opportunities for ICICI Bank and Asian Hotels
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICICI and Asian is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Asian Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels 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 Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Asian Hotels go up and down completely randomly.
Pair Corralation between ICICI Bank and Asian Hotels
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Asian Hotels. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 2.63 times less risky than Asian Hotels. The stock trades about -0.04 of its potential returns per unit of risk. The Asian Hotels Limited is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 29,665 in Asian Hotels Limited on November 6, 2024 and sell it today you would earn a total of 8,070 from holding Asian Hotels Limited or generate 27.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Asian Hotels Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Asian Hotels Limited |
ICICI Bank and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Asian Hotels
The main advantage of trading using opposite ICICI Bank and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Asian Hotels 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.| ICICI Bank vs. Spencers Retail Limited | ICICI Bank vs. Zota Health Care | ICICI Bank vs. V2 Retail Limited | ICICI Bank vs. Apollo Hospitals Enterprise |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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