Correlation Between ICICI Bank and City Union
Specify exactly 2 symbols:
By analyzing existing cross correlation between ICICI Bank Limited and City Union Bank, you can compare the effects of market volatilities on ICICI Bank and City Union 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 City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and City Union.
Diversification Opportunities for ICICI Bank and City Union
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and City is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and City Union Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Union Bank 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 City Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Union Bank has no effect on the direction of ICICI Bank i.e., ICICI Bank and City Union go up and down completely randomly.
Pair Corralation between ICICI Bank and City Union
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the City Union. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 1.57 times less risky than City Union. The stock trades about -0.03 of its potential returns per unit of risk. The City Union Bank is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 17,544 in City Union Bank on November 4, 2024 and sell it today you would lose (172.00) from holding City Union Bank or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. City Union Bank
Performance |
| Timeline |
| ICICI Bank Limited |
| City Union Bank |
ICICI Bank and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and City Union
The main advantage of trading using opposite ICICI Bank and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, City Union 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 City Union will offset losses from the drop in City Union's long position.| ICICI Bank vs. V Mart Retail Limited | ICICI Bank vs. Consolidated Construction Consortium | ICICI Bank vs. LT Foods Limited | ICICI Bank vs. ADF Foods Limited |
| City Union vs. JB Chemicals Pharmaceuticals | City Union vs. Computer Age Management | City Union vs. Hindcon Chemicals Limited | City Union vs. Radiant Cash Management |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |