Correlation Between ICICI Bank and Network18 Media
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By analyzing existing cross correlation between ICICI Bank Limited and Network18 Media Investments, you can compare the effects of market volatilities on ICICI Bank and Network18 Media 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 Network18 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Network18 Media.
Diversification Opportunities for ICICI Bank and Network18 Media
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and Network18 is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Network18 Media Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network18 Media Inve 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 Network18 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network18 Media Inve has no effect on the direction of ICICI Bank i.e., ICICI Bank and Network18 Media go up and down completely randomly.
Pair Corralation between ICICI Bank and Network18 Media
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.44 times more return on investment than Network18 Media. However, ICICI Bank Limited is 2.3 times less risky than Network18 Media. It trades about 0.01 of its potential returns per unit of risk. Network18 Media Investments is currently generating about -0.46 per unit of risk. If you would invest 126,600 in ICICI Bank Limited on November 7, 2024 and sell it today you would earn a total of 220.00 from holding ICICI Bank Limited or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Network18 Media Investments
Performance |
| Timeline |
| ICICI Bank Limited |
| Network18 Media Inve |
ICICI Bank and Network18 Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Network18 Media
The main advantage of trading using opposite ICICI Bank and Network18 Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Network18 Media 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 Network18 Media will offset losses from the drop in Network18 Media's long position.| ICICI Bank vs. Spencers Retail Limited | ICICI Bank vs. Zota Health Care | ICICI Bank vs. V2 Retail Limited | ICICI Bank vs. Apollo Hospitals Enterprise |
| Network18 Media vs. Tata Consultancy Services | Network18 Media vs. Quess Corp Limited | Network18 Media vs. Reliance Industries Limited | Network18 Media vs. Infosys 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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