Correlation Between ICICI Bank and SBI Life
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By analyzing existing cross correlation between ICICI Bank Limited and SBI Life Insurance, you can compare the effects of market volatilities on ICICI Bank and SBI Life 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 SBI Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and SBI Life.
Diversification Opportunities for ICICI Bank and SBI Life
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and SBI is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and SBI Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBI Life Insurance 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 SBI Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBI Life Insurance has no effect on the direction of ICICI Bank i.e., ICICI Bank and SBI Life go up and down completely randomly.
Pair Corralation between ICICI Bank and SBI Life
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.8 times more return on investment than SBI Life. However, ICICI Bank Limited is 1.25 times less risky than SBI Life. It trades about 0.06 of its potential returns per unit of risk. SBI Life Insurance is currently generating about 0.02 per unit of risk. If you would invest 92,060 in ICICI Bank Limited on September 28, 2024 and sell it today you would earn a total of 38,695 from holding ICICI Bank Limited or generate 42.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. SBI Life Insurance
Performance |
| Timeline |
| ICICI Bank Limited |
| SBI Life Insurance |
ICICI Bank and SBI Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and SBI Life
The main advantage of trading using opposite ICICI Bank and SBI Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, SBI Life 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 SBI Life will offset losses from the drop in SBI Life's 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 |
| SBI Life vs. Indraprastha Medical | SBI Life vs. Mangalore Chemicals Fertilizers | SBI Life vs. Tata Chemicals Limited | SBI Life vs. Beta Drugs |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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