Correlation Between ICICI Bank and Capacite Infraprojects
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By analyzing existing cross correlation between ICICI Bank Limited and Capacite Infraprojects Limited, you can compare the effects of market volatilities on ICICI Bank and Capacite Infraprojects 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 Capacite Infraprojects. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Capacite Infraprojects.
Diversification Opportunities for ICICI Bank and Capacite Infraprojects
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ICICI and Capacite is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Capacite Infraprojects Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capacite Infraprojects 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 Capacite Infraprojects. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capacite Infraprojects has no effect on the direction of ICICI Bank i.e., ICICI Bank and Capacite Infraprojects go up and down completely randomly.
Pair Corralation between ICICI Bank and Capacite Infraprojects
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.41 times more return on investment than Capacite Infraprojects. However, ICICI Bank Limited is 2.46 times less risky than Capacite Infraprojects. It trades about -0.01 of its potential returns per unit of risk. Capacite Infraprojects Limited is currently generating about -0.03 per unit of risk. If you would invest 123,800 in ICICI Bank Limited on December 10, 2024 and sell it today you would lose (2,315) from holding ICICI Bank Limited or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
ICICI Bank Limited vs. Capacite Infraprojects Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Capacite Infraprojects |
ICICI Bank and Capacite Infraprojects Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Capacite Infraprojects
The main advantage of trading using opposite ICICI Bank and Capacite Infraprojects positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Capacite Infraprojects 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 Capacite Infraprojects will offset losses from the drop in Capacite Infraprojects' long position.| ICICI Bank vs. Paramount Communications Limited | ICICI Bank vs. Iris Clothings Limited | ICICI Bank vs. Pritish Nandy Communications | ICICI Bank vs. Landmark Cars Limited |
| Capacite Infraprojects vs. LLOYDS METALS AND | Capacite Infraprojects vs. MIC Electronics Limited | Capacite Infraprojects vs. Nucleus Software Exports | Capacite Infraprojects vs. Coffee Day Enterprises |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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