Correlation Between ICICI Bank and Maharashtra Scooters
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By analyzing existing cross correlation between ICICI Bank Limited and Maharashtra Scooters Limited, you can compare the effects of market volatilities on ICICI Bank and Maharashtra Scooters 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 Maharashtra Scooters. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Maharashtra Scooters.
Diversification Opportunities for ICICI Bank and Maharashtra Scooters
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICICI and Maharashtra is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Maharashtra Scooters Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maharashtra Scooters 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 Maharashtra Scooters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maharashtra Scooters has no effect on the direction of ICICI Bank i.e., ICICI Bank and Maharashtra Scooters go up and down completely randomly.
Pair Corralation between ICICI Bank and Maharashtra Scooters
Assuming the 90 days trading horizon ICICI Bank is expected to generate 1.93 times less return on investment than Maharashtra Scooters. But when comparing it to its historical volatility, ICICI Bank Limited is 1.62 times less risky than Maharashtra Scooters. It trades about 0.08 of its potential returns per unit of risk. Maharashtra Scooters Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 431,459 in Maharashtra Scooters Limited on October 16, 2024 and sell it today you would earn a total of 478,896 from holding Maharashtra Scooters Limited or generate 110.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
ICICI Bank Limited vs. Maharashtra Scooters Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Maharashtra Scooters |
ICICI Bank and Maharashtra Scooters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Maharashtra Scooters
The main advantage of trading using opposite ICICI Bank and Maharashtra Scooters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Maharashtra Scooters 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 Maharashtra Scooters will offset losses from the drop in Maharashtra Scooters' long position.| ICICI Bank vs. Nucleus Software Exports | ICICI Bank vs. Imagicaaworld Entertainment Limited | ICICI Bank vs. Hathway Cable Datacom | ICICI Bank vs. Selan Exploration Technology |
| Maharashtra Scooters vs. Tata Communications Limited | Maharashtra Scooters vs. Patanjali Foods Limited | Maharashtra Scooters vs. Credo Brands Marketing | Maharashtra Scooters vs. Silgo Retail 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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