Correlation Between ICICI Bank and Hexa Tradex
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By analyzing existing cross correlation between ICICI Bank Limited and Hexa Tradex Limited, you can compare the effects of market volatilities on ICICI Bank and Hexa Tradex 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 Hexa Tradex. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Hexa Tradex.
Diversification Opportunities for ICICI Bank and Hexa Tradex
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICICI and Hexa is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Hexa Tradex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexa Tradex Limited 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 Hexa Tradex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexa Tradex Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Hexa Tradex go up and down completely randomly.
Pair Corralation between ICICI Bank and Hexa Tradex
Assuming the 90 days trading horizon ICICI Bank is expected to generate 4.45 times less return on investment than Hexa Tradex. But when comparing it to its historical volatility, ICICI Bank Limited is 3.06 times less risky than Hexa Tradex. It trades about 0.12 of its potential returns per unit of risk. Hexa Tradex Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 14,965 in Hexa Tradex Limited on September 3, 2024 and sell it today you would earn a total of 16,620 from holding Hexa Tradex Limited or generate 111.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
ICICI Bank Limited vs. Hexa Tradex Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Hexa Tradex Limited |
ICICI Bank and Hexa Tradex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Hexa Tradex
The main advantage of trading using opposite ICICI Bank and Hexa Tradex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Hexa Tradex 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 Hexa Tradex will offset losses from the drop in Hexa Tradex's long position.| ICICI Bank vs. Reliance Industries Limited | ICICI Bank vs. Shipping | ICICI Bank vs. Indo Borax Chemicals | ICICI Bank vs. Kingfa Science Technology |
| Hexa Tradex vs. Reliance Industries Limited | Hexa Tradex vs. Shipping | Hexa Tradex vs. Indo Borax Chemicals | Hexa Tradex 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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