Correlation Between ICICI Bank and Mindteck
Specify exactly 2 symbols:
By analyzing existing cross correlation between ICICI Bank Limited and Mindteck Limited, you can compare the effects of market volatilities on ICICI Bank and Mindteck 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 Mindteck. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Mindteck.
Diversification Opportunities for ICICI Bank and Mindteck
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and Mindteck is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Mindteck Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mindteck Limited 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 Mindteck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mindteck Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Mindteck go up and down completely randomly.
Pair Corralation between ICICI Bank and Mindteck
Assuming the 90 days trading horizon ICICI Bank is expected to generate 2.74 times less return on investment than Mindteck. But when comparing it to its historical volatility, ICICI Bank Limited is 5.73 times less risky than Mindteck. It trades about 0.44 of its potential returns per unit of risk. Mindteck Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 23,955 in Mindteck Limited on September 18, 2024 and sell it today you would earn a total of 4,940 from holding Mindteck Limited or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
ICICI Bank Limited vs. Mindteck Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Mindteck Limited |
ICICI Bank and Mindteck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Mindteck
The main advantage of trading using opposite ICICI Bank and Mindteck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Mindteck 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 Mindteck will offset losses from the drop in Mindteck's long position.| ICICI Bank vs. Pritish Nandy Communications | ICICI Bank vs. NRB Industrial Bearings | ICICI Bank vs. Hi Tech Pipes Limited | ICICI Bank vs. Ankit Metal Power |
| Mindteck vs. ICICI Bank Limited | Mindteck vs. Bank of Maharashtra | Mindteck vs. City Union Bank | Mindteck vs. UCO Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |