Correlation Between ICICI Bank and EIH Associated
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By analyzing existing cross correlation between ICICI Bank Limited and EIH Associated Hotels, you can compare the effects of market volatilities on ICICI Bank and EIH Associated 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 EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and EIH Associated.
Diversification Opportunities for ICICI Bank and EIH Associated
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and EIH is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and EIH Associated Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIH Associated Hotels 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 EIH Associated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIH Associated Hotels has no effect on the direction of ICICI Bank i.e., ICICI Bank and EIH Associated go up and down completely randomly.
Pair Corralation between ICICI Bank and EIH Associated
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.39 times more return on investment than EIH Associated. However, ICICI Bank Limited is 2.56 times less risky than EIH Associated. It trades about -0.04 of its potential returns per unit of risk. EIH Associated Hotels is currently generating about -0.12 per unit of risk. If you would invest 126,600 in ICICI Bank Limited on November 7, 2024 and sell it today you would lose (1,305) from holding ICICI Bank Limited or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. EIH Associated Hotels
Performance |
| Timeline |
| ICICI Bank Limited |
| EIH Associated Hotels |
ICICI Bank and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and EIH Associated
The main advantage of trading using opposite ICICI Bank and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, EIH Associated 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 EIH Associated will offset losses from the drop in EIH Associated's long position.| ICICI Bank vs. Manaksia Steels Limited | ICICI Bank vs. Next Mediaworks Limited | ICICI Bank vs. Varun Beverages Limited | ICICI Bank vs. Embassy Office Parks |
| EIH Associated vs. Consolidated Construction Consortium | EIH Associated vs. Biofil Chemicals Pharmaceuticals | EIH Associated vs. Refex Industries Limited | EIH Associated vs. Kingfa Science Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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