Correlation Between ICICI Bank and Indraprastha Medical
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By analyzing existing cross correlation between ICICI Bank Limited and Indraprastha Medical, you can compare the effects of market volatilities on ICICI Bank and Indraprastha Medical 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 Indraprastha Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Indraprastha Medical.
Diversification Opportunities for ICICI Bank and Indraprastha Medical
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICICI and Indraprastha is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Indraprastha Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indraprastha Medical 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 Indraprastha Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indraprastha Medical has no effect on the direction of ICICI Bank i.e., ICICI Bank and Indraprastha Medical go up and down completely randomly.
Pair Corralation between ICICI Bank and Indraprastha Medical
Assuming the 90 days trading horizon ICICI Bank is expected to generate 5.04 times less return on investment than Indraprastha Medical. But when comparing it to its historical volatility, ICICI Bank Limited is 2.67 times less risky than Indraprastha Medical. It trades about 0.08 of its potential returns per unit of risk. Indraprastha Medical is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 8,564 in Indraprastha Medical on September 2, 2024 and sell it today you would earn a total of 37,411 from holding Indraprastha Medical or generate 436.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
ICICI Bank Limited vs. Indraprastha Medical
Performance |
| Timeline |
| ICICI Bank Limited |
| Indraprastha Medical |
ICICI Bank and Indraprastha Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Indraprastha Medical
The main advantage of trading using opposite ICICI Bank and Indraprastha Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Indraprastha Medical 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 Indraprastha Medical will offset losses from the drop in Indraprastha Medical'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 |
| Indraprastha Medical vs. State Bank of | Indraprastha Medical vs. Life Insurance | Indraprastha Medical vs. HDFC Bank Limited | Indraprastha Medical vs. ICICI Bank 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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