Correlation Between ICICI Bank and DiGiSPICE Technologies
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By analyzing existing cross correlation between ICICI Bank Limited and DiGiSPICE Technologies Limited, you can compare the effects of market volatilities on ICICI Bank and DiGiSPICE Technologies 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 DiGiSPICE Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and DiGiSPICE Technologies.
Diversification Opportunities for ICICI Bank and DiGiSPICE Technologies
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICICI and DiGiSPICE is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and DiGiSPICE Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DiGiSPICE Technologies 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 DiGiSPICE Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DiGiSPICE Technologies has no effect on the direction of ICICI Bank i.e., ICICI Bank and DiGiSPICE Technologies go up and down completely randomly.
Pair Corralation between ICICI Bank and DiGiSPICE Technologies
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the DiGiSPICE Technologies. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 2.62 times less risky than DiGiSPICE Technologies. The stock trades about -0.06 of its potential returns per unit of risk. The DiGiSPICE Technologies Limited is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 2,610 in DiGiSPICE Technologies Limited on September 24, 2024 and sell it today you would earn a total of 572.00 from holding DiGiSPICE Technologies Limited or generate 21.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. DiGiSPICE Technologies Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| DiGiSPICE Technologies |
ICICI Bank and DiGiSPICE Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and DiGiSPICE Technologies
The main advantage of trading using opposite ICICI Bank and DiGiSPICE Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, DiGiSPICE Technologies 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 DiGiSPICE Technologies will offset losses from the drop in DiGiSPICE Technologies' long position.| ICICI Bank vs. Kingfa Science Technology | ICICI Bank vs. Rico Auto Industries | ICICI Bank vs. GACM Technologies Limited | ICICI Bank vs. COSMO FIRST LIMITED |
| DiGiSPICE Technologies vs. State Bank of | DiGiSPICE Technologies vs. Life Insurance | DiGiSPICE Technologies vs. HDFC Bank Limited | DiGiSPICE Technologies 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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