Correlation Between ICICI Bank and Shivalik Bimetal
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By analyzing existing cross correlation between ICICI Bank Limited and Shivalik Bimetal Controls, you can compare the effects of market volatilities on ICICI Bank and Shivalik Bimetal 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 Shivalik Bimetal. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Shivalik Bimetal.
Diversification Opportunities for ICICI Bank and Shivalik Bimetal
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and Shivalik is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Shivalik Bimetal Controls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shivalik Bimetal Controls 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 Shivalik Bimetal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shivalik Bimetal Controls has no effect on the direction of ICICI Bank i.e., ICICI Bank and Shivalik Bimetal go up and down completely randomly.
Pair Corralation between ICICI Bank and Shivalik Bimetal
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.56 times more return on investment than Shivalik Bimetal. However, ICICI Bank Limited is 1.79 times less risky than Shivalik Bimetal. It trades about 0.12 of its potential returns per unit of risk. Shivalik Bimetal Controls is currently generating about 0.03 per unit of risk. If you would invest 91,304 in ICICI Bank Limited on September 14, 2024 and sell it today you would earn a total of 41,621 from holding ICICI Bank Limited or generate 45.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
ICICI Bank Limited vs. Shivalik Bimetal Controls
Performance |
| Timeline |
| ICICI Bank Limited |
| Shivalik Bimetal Controls |
ICICI Bank and Shivalik Bimetal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Shivalik Bimetal
The main advantage of trading using opposite ICICI Bank and Shivalik Bimetal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Shivalik Bimetal 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 Shivalik Bimetal will offset losses from the drop in Shivalik Bimetal's long position.| ICICI Bank vs. Reliance Industries Limited | ICICI Bank vs. State Bank of | ICICI Bank vs. Oil Natural Gas |
| Shivalik Bimetal vs. State Bank of | Shivalik Bimetal vs. Life Insurance | Shivalik Bimetal vs. HDFC Bank Limited | Shivalik Bimetal 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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