Correlation Between ICICI Bank and Mask Investments
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By analyzing existing cross correlation between ICICI Bank Limited and Mask Investments Limited, you can compare the effects of market volatilities on ICICI Bank and Mask Investments 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 Mask Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Mask Investments.
Diversification Opportunities for ICICI Bank and Mask Investments
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and Mask is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Mask Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mask Investments 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 Mask Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mask Investments has no effect on the direction of ICICI Bank i.e., ICICI Bank and Mask Investments go up and down completely randomly.
Pair Corralation between ICICI Bank and Mask Investments
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.37 times more return on investment than Mask Investments. However, ICICI Bank Limited is 2.7 times less risky than Mask Investments. It trades about -0.29 of its potential returns per unit of risk. Mask Investments Limited is currently generating about -0.11 per unit of risk. If you would invest 129,345 in ICICI Bank Limited on October 29, 2024 and sell it today you would lose (8,425) from holding ICICI Bank Limited or give up 6.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Mask Investments Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Mask Investments |
ICICI Bank and Mask Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Mask Investments
The main advantage of trading using opposite ICICI Bank and Mask Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Mask Investments 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 Mask Investments will offset losses from the drop in Mask Investments' long position.| ICICI Bank vs. Network18 Media Investments | ICICI Bank vs. Bharatiya Global Infomedia | ICICI Bank vs. Eros International Media | ICICI Bank vs. United Drilling Tools |
| Mask Investments vs. State Bank of | Mask Investments vs. Reliance Industries Limited | Mask Investments vs. HDFC Bank Limited | Mask Investments vs. Tata Motors 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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