Correlation Between ICICI Bank and Rainbow Childrens
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By analyzing existing cross correlation between ICICI Bank Limited and Rainbow Childrens Medicare, you can compare the effects of market volatilities on ICICI Bank and Rainbow Childrens 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 Rainbow Childrens. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Rainbow Childrens.
Diversification Opportunities for ICICI Bank and Rainbow Childrens
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and Rainbow is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Rainbow Childrens Medicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rainbow Childrens 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 Rainbow Childrens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rainbow Childrens has no effect on the direction of ICICI Bank i.e., ICICI Bank and Rainbow Childrens go up and down completely randomly.
Pair Corralation between ICICI Bank and Rainbow Childrens
Assuming the 90 days trading horizon ICICI Bank is expected to generate 1.71 times less return on investment than Rainbow Childrens. But when comparing it to its historical volatility, ICICI Bank Limited is 1.95 times less risky than Rainbow Childrens. It trades about 0.08 of its potential returns per unit of risk. Rainbow Childrens Medicare is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 92,759 in Rainbow Childrens Medicare on September 2, 2024 and sell it today you would earn a total of 66,181 from holding Rainbow Childrens Medicare or generate 71.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
ICICI Bank Limited vs. Rainbow Childrens Medicare
Performance |
| Timeline |
| ICICI Bank Limited |
| Rainbow Childrens |
ICICI Bank and Rainbow Childrens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Rainbow Childrens
The main advantage of trading using opposite ICICI Bank and Rainbow Childrens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Rainbow Childrens 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 Rainbow Childrens will offset losses from the drop in Rainbow Childrens' long position.| ICICI Bank vs. GM Breweries Limited | ICICI Bank vs. Aban Offshore Limited | ICICI Bank vs. Kilitch Drugs Limited | ICICI Bank vs. Lemon Tree Hotels |
| Rainbow Childrens vs. S P Apparels | Rainbow Childrens vs. Kewal Kiran Clothing | Rainbow Childrens vs. TVS Electronics Limited | Rainbow Childrens vs. UFO Moviez India |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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