Correlation Between ICICI Bank and SIL Investments
Specify exactly 2 symbols:
By analyzing existing cross correlation between ICICI Bank Limited and SIL Investments Limited, you can compare the effects of market volatilities on ICICI Bank and SIL Investments 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 SIL Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and SIL Investments.
Diversification Opportunities for ICICI Bank and SIL Investments
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICICI and SIL is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and SIL Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIL Investments 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 SIL Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIL Investments has no effect on the direction of ICICI Bank i.e., ICICI Bank and SIL Investments go up and down completely randomly.
Pair Corralation between ICICI Bank and SIL Investments
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the SIL Investments. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 1.94 times less risky than SIL Investments. The stock trades about -0.33 of its potential returns per unit of risk. The SIL Investments Limited is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 66,025 in SIL Investments Limited on October 25, 2024 and sell it today you would lose (4,745) from holding SIL Investments Limited or give up 7.19% 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. SIL Investments Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| SIL Investments |
ICICI Bank and SIL Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and SIL Investments
The main advantage of trading using opposite ICICI Bank and SIL Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, SIL Investments 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 SIL Investments will offset losses from the drop in SIL Investments' long position.| ICICI Bank vs. Bharat Road Network | ICICI Bank vs. Fine Organic Industries | ICICI Bank vs. G Tec Jainx Education | ICICI Bank vs. Akums Drugs and |
| SIL Investments vs. State Bank of | SIL Investments vs. Life Insurance | SIL Investments vs. HDFC Bank Limited | SIL Investments 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |