Correlation Between ICICI Bank and Embassy Office
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By analyzing existing cross correlation between ICICI Bank Limited and Embassy Office Parks, you can compare the effects of market volatilities on ICICI Bank and Embassy Office 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 Embassy Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Embassy Office.
Diversification Opportunities for ICICI Bank and Embassy Office
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and Embassy is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Embassy Office Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embassy Office Parks 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 Embassy Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embassy Office Parks has no effect on the direction of ICICI Bank i.e., ICICI Bank and Embassy Office go up and down completely randomly.
Pair Corralation between ICICI Bank and Embassy Office
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Embassy Office. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 1.55 times less risky than Embassy Office. The stock trades about -0.28 of its potential returns per unit of risk. The Embassy Office Parks is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 37,800 in Embassy Office Parks on October 11, 2024 and sell it today you would lose (702.00) from holding Embassy Office Parks or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Embassy Office Parks
Performance |
| Timeline |
| ICICI Bank Limited |
| Embassy Office Parks |
ICICI Bank and Embassy Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Embassy Office
The main advantage of trading using opposite ICICI Bank and Embassy Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Embassy Office 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 Embassy Office will offset losses from the drop in Embassy Office's long position.| ICICI Bank vs. Bikaji Foods International | ICICI Bank vs. ILFS Investment Managers | ICICI Bank vs. Pilani Investment and | ICICI Bank vs. Cholamandalam Investment and |
| Embassy Office vs. Golden Tobacco Limited | Embassy Office vs. ICICI Bank Limited | Embassy Office vs. Nucleus Software Exports | Embassy Office vs. The Federal Bank |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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