Correlation Between ICICI Bank and ASK AUTOMOTIVE
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By analyzing existing cross correlation between ICICI Bank Limited and ASK AUTOMOTIVE LIMITED, you can compare the effects of market volatilities on ICICI Bank and ASK AUTOMOTIVE 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 ASK AUTOMOTIVE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and ASK AUTOMOTIVE.
Diversification Opportunities for ICICI Bank and ASK AUTOMOTIVE
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and ASK is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and ASK AUTOMOTIVE LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASK AUTOMOTIVE 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 ASK AUTOMOTIVE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASK AUTOMOTIVE has no effect on the direction of ICICI Bank i.e., ICICI Bank and ASK AUTOMOTIVE go up and down completely randomly.
Pair Corralation between ICICI Bank and ASK AUTOMOTIVE
Assuming the 90 days trading horizon ICICI Bank is expected to generate 1.99 times less return on investment than ASK AUTOMOTIVE. But when comparing it to its historical volatility, ICICI Bank Limited is 1.84 times less risky than ASK AUTOMOTIVE. It trades about 0.09 of its potential returns per unit of risk. ASK AUTOMOTIVE LIMITED is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 28,613 in ASK AUTOMOTIVE LIMITED on September 14, 2024 and sell it today you would earn a total of 19,772 from holding ASK AUTOMOTIVE LIMITED or generate 69.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
ICICI Bank Limited vs. ASK AUTOMOTIVE LIMITED
Performance |
| Timeline |
| ICICI Bank Limited |
| ASK AUTOMOTIVE |
ICICI Bank and ASK AUTOMOTIVE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and ASK AUTOMOTIVE
The main advantage of trading using opposite ICICI Bank and ASK AUTOMOTIVE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, ASK AUTOMOTIVE 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 ASK AUTOMOTIVE will offset losses from the drop in ASK AUTOMOTIVE's long position.| ICICI Bank vs. Reliance Industries Limited | ICICI Bank vs. State Bank of | ICICI Bank vs. Oil Natural Gas |
| ASK AUTOMOTIVE vs. Landmark Cars Limited | ASK AUTOMOTIVE vs. Ankit Metal Power | ASK AUTOMOTIVE vs. NRB Industrial Bearings | ASK AUTOMOTIVE vs. Tata Investment |
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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