Correlation Between ICICI Bank and Infosys
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By analyzing existing cross correlation between ICICI Bank Limited and Infosys Limited, you can compare the effects of market volatilities on ICICI Bank and Infosys 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 Infosys. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Infosys.
Diversification Opportunities for ICICI Bank and Infosys
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICICI and Infosys is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Infosys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infosys 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 Infosys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infosys Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Infosys go up and down completely randomly.
Pair Corralation between ICICI Bank and Infosys
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.76 times more return on investment than Infosys. However, ICICI Bank Limited is 1.32 times less risky than Infosys. It trades about 0.08 of its potential returns per unit of risk. Infosys Limited is currently generating about 0.05 per unit of risk. If you would invest 85,801 in ICICI Bank Limited on September 28, 2024 and sell it today you would earn a total of 44,954 from holding ICICI Bank Limited or generate 52.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
ICICI Bank Limited vs. Infosys Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Infosys Limited |
ICICI Bank and Infosys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Infosys
The main advantage of trading using opposite ICICI Bank and Infosys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Infosys 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 Infosys will offset losses from the drop in Infosys' long position.| ICICI Bank vs. Kingfa Science Technology | ICICI Bank vs. Rico Auto Industries | ICICI Bank vs. GACM Technologies Limited | ICICI Bank vs. COSMO FIRST LIMITED |
| Infosys vs. State Bank of | Infosys vs. Life Insurance | Infosys vs. HDFC Bank Limited | Infosys 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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