Correlation Between ICICI Bank and Hybrid Financial
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By analyzing existing cross correlation between ICICI Bank Limited and Hybrid Financial Services, you can compare the effects of market volatilities on ICICI Bank and Hybrid 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 Hybrid Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Hybrid Financial.
Diversification Opportunities for ICICI Bank and Hybrid Financial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and Hybrid is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Hybrid Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hybrid 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 Hybrid Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hybrid Financial Services has no effect on the direction of ICICI Bank i.e., ICICI Bank and Hybrid Financial go up and down completely randomly.
Pair Corralation between ICICI Bank and Hybrid Financial
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.36 times more return on investment than Hybrid Financial. However, ICICI Bank Limited is 2.75 times less risky than Hybrid Financial. It trades about 0.07 of its potential returns per unit of risk. Hybrid Financial Services is currently generating about 0.0 per unit of risk. If you would invest 91,706 in ICICI Bank Limited on September 3, 2024 and sell it today you would earn a total of 38,304 from holding ICICI Bank Limited or generate 41.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Hybrid Financial Services
Performance |
| Timeline |
| ICICI Bank Limited |
| Hybrid Financial Services |
ICICI Bank and Hybrid Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Hybrid Financial
The main advantage of trading using opposite ICICI Bank and Hybrid Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Hybrid 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 Hybrid Financial will offset losses from the drop in Hybrid Financial'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 |
| Hybrid Financial vs. Chambal Fertilizers Chemicals | Hybrid Financial vs. Shree Pushkar Chemicals | Hybrid Financial vs. Generic Engineering Construction | Hybrid Financial vs. Reliance Communications Limited |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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