Correlation Between ICICI Bank and Agro Tech
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By analyzing existing cross correlation between ICICI Bank Limited and Agro Tech Foods, you can compare the effects of market volatilities on ICICI Bank and Agro Tech 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 Agro Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Agro Tech.
Diversification Opportunities for ICICI Bank and Agro Tech
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICICI and Agro is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Agro Tech Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agro Tech Foods 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 Agro Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agro Tech Foods has no effect on the direction of ICICI Bank i.e., ICICI Bank and Agro Tech go up and down completely randomly.
Pair Corralation between ICICI Bank and Agro Tech
Assuming the 90 days trading horizon ICICI Bank is expected to generate 4.59 times less return on investment than Agro Tech. But when comparing it to its historical volatility, ICICI Bank Limited is 2.76 times less risky than Agro Tech. It trades about 0.05 of its potential returns per unit of risk. Agro Tech Foods is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 85,870 in Agro Tech Foods on August 30, 2024 and sell it today you would earn a total of 7,850 from holding Agro Tech Foods or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
ICICI Bank Limited vs. Agro Tech Foods
Performance |
| Timeline |
| ICICI Bank Limited |
| Agro Tech Foods |
ICICI Bank and Agro Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Agro Tech
The main advantage of trading using opposite ICICI Bank and Agro Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Agro Tech 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 Agro Tech will offset losses from the drop in Agro Tech's 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 |
| Agro Tech vs. State Bank of | Agro Tech vs. Life Insurance | Agro Tech vs. HDFC Bank Limited | Agro Tech 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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