Correlation Between ICICI Bank and Salzer Electronics
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By analyzing existing cross correlation between ICICI Bank Limited and Salzer Electronics Limited, you can compare the effects of market volatilities on ICICI Bank and Salzer Electronics 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 Salzer Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Salzer Electronics.
Diversification Opportunities for ICICI Bank and Salzer Electronics
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICICI and Salzer is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Salzer Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salzer Electronics 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 Salzer Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salzer Electronics has no effect on the direction of ICICI Bank i.e., ICICI Bank and Salzer Electronics go up and down completely randomly.
Pair Corralation between ICICI Bank and Salzer Electronics
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.19 times more return on investment than Salzer Electronics. However, ICICI Bank Limited is 5.4 times less risky than Salzer Electronics. It trades about 0.0 of its potential returns per unit of risk. Salzer Electronics Limited is currently generating about -0.26 per unit of risk. If you would invest 122,525 in ICICI Bank Limited on November 28, 2024 and sell it today you would lose (110.00) from holding ICICI Bank Limited or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Salzer Electronics Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Salzer Electronics |
ICICI Bank and Salzer Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Salzer Electronics
The main advantage of trading using opposite ICICI Bank and Salzer Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Salzer Electronics 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 Salzer Electronics will offset losses from the drop in Salzer Electronics' long position.| ICICI Bank vs. Yatra Online Limited | ICICI Bank vs. LLOYDS METALS AND | ICICI Bank vs. Hilton Metal Forging | ICICI Bank vs. Praxis Home Retail |
| Salzer Electronics vs. Aarey Drugs Pharmaceuticals | Salzer Electronics vs. DCM Financial Services | Salzer Electronics vs. Newgen Software Technologies | Salzer Electronics vs. Akums Drugs and |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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