Correlation Between ICICI Bank and Kohinoor Foods
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By analyzing existing cross correlation between ICICI Bank Limited and Kohinoor Foods Limited, you can compare the effects of market volatilities on ICICI Bank and Kohinoor Foods 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 Kohinoor Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Kohinoor Foods.
Diversification Opportunities for ICICI Bank and Kohinoor Foods
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICICI and Kohinoor is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Kohinoor Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kohinoor Foods 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 Kohinoor Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kohinoor Foods has no effect on the direction of ICICI Bank i.e., ICICI Bank and Kohinoor Foods go up and down completely randomly.
Pair Corralation between ICICI Bank and Kohinoor Foods
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Kohinoor Foods. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 5.23 times less risky than Kohinoor Foods. The stock trades about -0.24 of its potential returns per unit of risk. The Kohinoor Foods Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,026 in Kohinoor Foods Limited on October 20, 2024 and sell it today you would lose (28.00) from holding Kohinoor Foods Limited or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Kohinoor Foods Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Kohinoor Foods |
ICICI Bank and Kohinoor Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Kohinoor Foods
The main advantage of trading using opposite ICICI Bank and Kohinoor Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Kohinoor Foods 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 Kohinoor Foods will offset losses from the drop in Kohinoor Foods' long position.| ICICI Bank vs. Sintex Plastics Technology | ICICI Bank vs. Som Distilleries Breweries | ICICI Bank vs. Man Infraconstruction Limited | ICICI Bank vs. Sportking India Limited |
| Kohinoor Foods vs. United Breweries Limited | Kohinoor Foods vs. Associated Alcohols Breweries | Kohinoor Foods vs. Mangalam Drugs And | Kohinoor Foods vs. Som Distilleries Breweries |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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