Correlation Between ICICI Bank and Fortis Healthcare
Specify exactly 2 symbols:
By analyzing existing cross correlation between ICICI Bank Limited and Fortis Healthcare Limited, you can compare the effects of market volatilities on ICICI Bank and Fortis Healthcare 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 Fortis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Fortis Healthcare.
Diversification Opportunities for ICICI Bank and Fortis Healthcare
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and Fortis is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Fortis Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortis Healthcare 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 Fortis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortis Healthcare has no effect on the direction of ICICI Bank i.e., ICICI Bank and Fortis Healthcare go up and down completely randomly.
Pair Corralation between ICICI Bank and Fortis Healthcare
Assuming the 90 days trading horizon ICICI Bank is expected to generate 2.45 times less return on investment than Fortis Healthcare. But when comparing it to its historical volatility, ICICI Bank Limited is 1.48 times less risky than Fortis Healthcare. It trades about 0.08 of its potential returns per unit of risk. Fortis Healthcare Limited is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 28,251 in Fortis Healthcare Limited on September 2, 2024 and sell it today you would earn a total of 37,669 from holding Fortis Healthcare Limited or generate 133.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
ICICI Bank Limited vs. Fortis Healthcare Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Fortis Healthcare |
ICICI Bank and Fortis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Fortis Healthcare
The main advantage of trading using opposite ICICI Bank and Fortis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Fortis Healthcare 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 Fortis Healthcare will offset losses from the drop in Fortis Healthcare's long position.| ICICI Bank vs. GM Breweries Limited | ICICI Bank vs. Aban Offshore Limited | ICICI Bank vs. Kilitch Drugs Limited | ICICI Bank vs. Lemon Tree Hotels |
| Fortis Healthcare vs. Nalwa Sons Investments | Fortis Healthcare vs. Tata Investment | Fortis Healthcare vs. Welspun Investments and | Fortis Healthcare vs. Jindal Poly Investment |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |