Correlation Between ICICI Bank and Chalet Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between ICICI Bank Limited and Chalet Hotels Limited, you can compare the effects of market volatilities on ICICI Bank and Chalet 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 Chalet Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Chalet Hotels.
Diversification Opportunities for ICICI Bank and Chalet Hotels
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and Chalet is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Chalet Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chalet 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 Chalet Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chalet Hotels Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Chalet Hotels go up and down completely randomly.
Pair Corralation between ICICI Bank and Chalet Hotels
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Chalet Hotels. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 2.15 times less risky than Chalet Hotels. The stock trades about -0.1 of its potential returns per unit of risk. The Chalet Hotels Limited is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 83,375 in Chalet Hotels Limited on October 26, 2024 and sell it today you would lose (5,290) from holding Chalet Hotels Limited or give up 6.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
ICICI Bank Limited vs. Chalet Hotels Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Chalet Hotels Limited |
ICICI Bank and Chalet Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Chalet Hotels
The main advantage of trading using opposite ICICI Bank and Chalet Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Chalet 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 Chalet Hotels will offset losses from the drop in Chalet Hotels' long position.| ICICI Bank vs. Generic Engineering Construction | ICICI Bank vs. Bodhi Tree Multimedia | ICICI Bank vs. Shemaroo Entertainment Limited | ICICI Bank vs. Salzer Electronics Limited |
| Chalet Hotels vs. Steel Authority of | Chalet Hotels vs. Zenith Steel Pipes | Chalet Hotels vs. Man Infraconstruction Limited | Chalet Hotels vs. Kalyani Steels 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |