Correlation Between ICICI Bank and Kamat Hotels
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By analyzing existing cross correlation between ICICI Bank Limited and Kamat Hotels Limited, you can compare the effects of market volatilities on ICICI Bank and Kamat Hotels 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 Kamat Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Kamat Hotels.
Diversification Opportunities for ICICI Bank and Kamat Hotels
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and Kamat is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Kamat Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamat Hotels 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 Kamat Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamat Hotels Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Kamat Hotels go up and down completely randomly.
Pair Corralation between ICICI Bank and Kamat Hotels
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Kamat Hotels. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 2.35 times less risky than Kamat Hotels. The stock trades about -0.1 of its potential returns per unit of risk. The Kamat Hotels Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 21,864 in Kamat Hotels Limited on October 26, 2024 and sell it today you would lose (274.00) from holding Kamat Hotels Limited or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
ICICI Bank Limited vs. Kamat Hotels Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Kamat Hotels Limited |
ICICI Bank and Kamat Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Kamat Hotels
The main advantage of trading using opposite ICICI Bank and Kamat Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Kamat Hotels 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 Kamat Hotels will offset losses from the drop in Kamat Hotels' long position.| ICICI Bank vs. Generic Engineering Construction | ICICI Bank vs. Bodhi Tree Multimedia | ICICI Bank vs. Shemaroo Entertainment Limited | ICICI Bank vs. Salzer Electronics Limited |
| Kamat Hotels vs. State Bank of | Kamat Hotels vs. Life Insurance | Kamat Hotels vs. HDFC Bank Limited | Kamat Hotels 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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