Correlation Between ICICI Bank and Mangalam Drugs
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By analyzing existing cross correlation between ICICI Bank Limited and Mangalam Drugs And, you can compare the effects of market volatilities on ICICI Bank and Mangalam Drugs 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 Mangalam Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Mangalam Drugs.
Diversification Opportunities for ICICI Bank and Mangalam Drugs
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and Mangalam is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Mangalam Drugs And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangalam Drugs And 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 Mangalam Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangalam Drugs And has no effect on the direction of ICICI Bank i.e., ICICI Bank and Mangalam Drugs go up and down completely randomly.
Pair Corralation between ICICI Bank and Mangalam Drugs
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 1.1 times more return on investment than Mangalam Drugs. However, ICICI Bank is 1.1 times more volatile than Mangalam Drugs And. It trades about 0.03 of its potential returns per unit of risk. Mangalam Drugs And is currently generating about -0.07 per unit of risk. If you would invest 129,440 in ICICI Bank Limited on August 28, 2024 and sell it today you would earn a total of 655.00 from holding ICICI Bank Limited or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ICICI Bank Limited vs. Mangalam Drugs And
Performance |
| Timeline |
| ICICI Bank Limited |
| Mangalam Drugs And |
ICICI Bank and Mangalam Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Mangalam Drugs
The main advantage of trading using opposite ICICI Bank and Mangalam Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Mangalam Drugs 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 Mangalam Drugs will offset losses from the drop in Mangalam Drugs' long position.| ICICI Bank vs. Hemisphere Properties India | ICICI Bank vs. Juniper Hotels | ICICI Bank vs. Tata Communications Limited | ICICI Bank vs. Royal Orchid Hotels |
| Mangalam Drugs vs. Kingfa Science Technology | Mangalam Drugs vs. Rico Auto Industries | Mangalam Drugs vs. GACM Technologies Limited | Mangalam Drugs vs. COSMO FIRST 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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