Correlation Between ICICI Bank and Sasken Technologies
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By analyzing existing cross correlation between ICICI Bank Limited and Sasken Technologies Limited, you can compare the effects of market volatilities on ICICI Bank and Sasken Technologies 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 Sasken Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Sasken Technologies.
Diversification Opportunities for ICICI Bank and Sasken Technologies
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICICI and Sasken is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Sasken Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasken Technologies 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 Sasken Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasken Technologies has no effect on the direction of ICICI Bank i.e., ICICI Bank and Sasken Technologies go up and down completely randomly.
Pair Corralation between ICICI Bank and Sasken Technologies
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.36 times more return on investment than Sasken Technologies. However, ICICI Bank Limited is 2.79 times less risky than Sasken Technologies. It trades about -0.06 of its potential returns per unit of risk. Sasken Technologies Limited is currently generating about -0.07 per unit of risk. If you would invest 130,300 in ICICI Bank Limited on September 24, 2024 and sell it today you would lose (1,460) from holding ICICI Bank Limited or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Sasken Technologies Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Sasken Technologies |
ICICI Bank and Sasken Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Sasken Technologies
The main advantage of trading using opposite ICICI Bank and Sasken Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Sasken Technologies 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 Sasken Technologies will offset losses from the drop in Sasken Technologies' long position.| ICICI Bank vs. Kingfa Science Technology | ICICI Bank vs. Rico Auto Industries | ICICI Bank vs. GACM Technologies Limited | ICICI Bank vs. COSMO FIRST LIMITED |
| Sasken Technologies vs. State Bank of | Sasken Technologies vs. Life Insurance | Sasken Technologies vs. HDFC Bank Limited | Sasken Technologies vs. ICICI Bank 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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