Correlation Between ICICI Bank and Silgo Retail
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By analyzing existing cross correlation between ICICI Bank Limited and Silgo Retail Limited, you can compare the effects of market volatilities on ICICI Bank and Silgo Retail 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 Silgo Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Silgo Retail.
Diversification Opportunities for ICICI Bank and Silgo Retail
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and Silgo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Silgo Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silgo Retail Limited 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 Silgo Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silgo Retail Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Silgo Retail go up and down completely randomly.
Pair Corralation between ICICI Bank and Silgo Retail
Assuming the 90 days trading horizon ICICI Bank is expected to generate 1.64 times less return on investment than Silgo Retail. But when comparing it to its historical volatility, ICICI Bank Limited is 3.24 times less risky than Silgo Retail. It trades about 0.07 of its potential returns per unit of risk. Silgo Retail Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,910 in Silgo Retail Limited on November 3, 2024 and sell it today you would earn a total of 537.00 from holding Silgo Retail Limited or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Silgo Retail Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Silgo Retail Limited |
ICICI Bank and Silgo Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Silgo Retail
The main advantage of trading using opposite ICICI Bank and Silgo Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Silgo Retail 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 Silgo Retail will offset losses from the drop in Silgo Retail's long position.| ICICI Bank vs. The Investment Trust | ICICI Bank vs. The State Trading | ICICI Bank vs. Cholamandalam Investment and | ICICI Bank vs. Dodla Dairy Limited |
| Silgo Retail vs. Rashtriya Chemicals and | Silgo Retail vs. Dharani SugarsChemicals Limited | Silgo Retail vs. Zuari Agro Chemicals | Silgo Retail vs. Fertilizers and Chemicals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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