Correlation Between ICICI Bank and Gujarat Raffia
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By analyzing existing cross correlation between ICICI Bank Limited and Gujarat Raffia Industries, you can compare the effects of market volatilities on ICICI Bank and Gujarat Raffia 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 Gujarat Raffia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Gujarat Raffia.
Diversification Opportunities for ICICI Bank and Gujarat Raffia
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and Gujarat is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Gujarat Raffia Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gujarat Raffia Industries 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 Gujarat Raffia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gujarat Raffia Industries has no effect on the direction of ICICI Bank i.e., ICICI Bank and Gujarat Raffia go up and down completely randomly.
Pair Corralation between ICICI Bank and Gujarat Raffia
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Gujarat Raffia. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 1.67 times less risky than Gujarat Raffia. The stock trades about -0.05 of its potential returns per unit of risk. The Gujarat Raffia Industries is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 4,579 in Gujarat Raffia Industries on August 25, 2024 and sell it today you would lose (153.00) from holding Gujarat Raffia Industries or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
ICICI Bank Limited vs. Gujarat Raffia Industries
Performance |
| Timeline |
| ICICI Bank Limited |
| Gujarat Raffia Industries |
ICICI Bank and Gujarat Raffia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Gujarat Raffia
The main advantage of trading using opposite ICICI Bank and Gujarat Raffia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Gujarat Raffia 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 Gujarat Raffia will offset losses from the drop in Gujarat Raffia's long position.| ICICI Bank vs. Jindal Steel Power | ICICI Bank vs. Steelcast Limited | ICICI Bank vs. Tube Investments of | ICICI Bank vs. BF Investment Limited |
| Gujarat Raffia vs. BF Investment Limited | Gujarat Raffia vs. HDFC Asset Management | Gujarat Raffia vs. Bajaj Holdings Investment | Gujarat Raffia vs. Industrial Investment Trust |
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 Stocks Directory module to find actively traded stocks across global markets.
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