Correlation Between ICICI Bank and Mahamaya Steel
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By analyzing existing cross correlation between ICICI Bank Limited and Mahamaya Steel Industries, you can compare the effects of market volatilities on ICICI Bank and Mahamaya Steel 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 Mahamaya Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Mahamaya Steel.
Diversification Opportunities for ICICI Bank and Mahamaya Steel
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and Mahamaya is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Mahamaya Steel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahamaya Steel Industries 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 Mahamaya Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahamaya Steel Industries has no effect on the direction of ICICI Bank i.e., ICICI Bank and Mahamaya Steel go up and down completely randomly.
Pair Corralation between ICICI Bank and Mahamaya Steel
Assuming the 90 days trading horizon ICICI Bank is expected to generate 8.63 times less return on investment than Mahamaya Steel. But when comparing it to its historical volatility, ICICI Bank Limited is 1.52 times less risky than Mahamaya Steel. It trades about 0.03 of its potential returns per unit of risk. Mahamaya Steel Industries is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 20,773 in Mahamaya Steel Industries on August 27, 2024 and sell it today you would earn a total of 1,205 from holding Mahamaya Steel Industries or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Mahamaya Steel Industries
Performance |
| Timeline |
| ICICI Bank Limited |
| Mahamaya Steel Industries |
ICICI Bank and Mahamaya Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Mahamaya Steel
The main advantage of trading using opposite ICICI Bank and Mahamaya Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Mahamaya Steel 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 Mahamaya Steel will offset losses from the drop in Mahamaya Steel's long position.| ICICI Bank vs. Imagicaaworld Entertainment Limited | ICICI Bank vs. Sonata Software Limited | ICICI Bank vs. Tata Communications Limited | ICICI Bank vs. Datamatics Global Services |
| Mahamaya Steel vs. NMDC Limited | Mahamaya Steel vs. Steel Authority of | Mahamaya Steel vs. Embassy Office Parks | Mahamaya Steel vs. Gujarat Narmada Valley |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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