Correlation Between ICICI Bank and Geojit Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between ICICI Bank Limited and Geojit Financial Services, you can compare the effects of market volatilities on ICICI Bank and Geojit Financial 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 Geojit Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Geojit Financial.
Diversification Opportunities for ICICI Bank and Geojit Financial
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and Geojit is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Geojit Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geojit Financial Services 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 Geojit Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geojit Financial Services has no effect on the direction of ICICI Bank i.e., ICICI Bank and Geojit Financial go up and down completely randomly.
Pair Corralation between ICICI Bank and Geojit Financial
Assuming the 90 days trading horizon ICICI Bank is expected to generate 2.27 times less return on investment than Geojit Financial. But when comparing it to its historical volatility, ICICI Bank Limited is 2.84 times less risky than Geojit Financial. It trades about 0.07 of its potential returns per unit of risk. Geojit Financial Services is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,181 in Geojit Financial Services on November 27, 2024 and sell it today you would earn a total of 3,582 from holding Geojit Financial Services or generate 85.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
ICICI Bank Limited vs. Geojit Financial Services
Performance |
| Timeline |
| ICICI Bank Limited |
| Geojit Financial Services |
ICICI Bank and Geojit Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Geojit Financial
The main advantage of trading using opposite ICICI Bank and Geojit Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Geojit Financial 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 Geojit Financial will offset losses from the drop in Geojit Financial's long position.| ICICI Bank vs. Alkali Metals Limited | ICICI Bank vs. Shivalik Bimetal Controls | ICICI Bank vs. Fortis Healthcare Limited | ICICI Bank vs. Sarthak Metals Limited |
| Geojit Financial vs. Lemon Tree Hotels | Geojit Financial vs. 21st Century Management | Geojit Financial vs. ITCHOTELS | Geojit Financial vs. Advani Hotels Resorts |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |