Correlation Between ICICI Bank and Spencers Retail
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By analyzing existing cross correlation between ICICI Bank Limited and Spencers Retail Limited, you can compare the effects of market volatilities on ICICI Bank and Spencers 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Spencers Retail.
Diversification Opportunities for ICICI Bank and Spencers Retail
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICICI and Spencers is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of ICICI Bank i.e., ICICI Bank and Spencers Retail go up and down completely randomly.
Pair Corralation between ICICI Bank and Spencers Retail
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.57 times more return on investment than Spencers Retail. However, ICICI Bank Limited is 1.76 times less risky than Spencers Retail. It trades about 0.04 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about -0.09 per unit of risk. If you would invest 129,440 in ICICI Bank Limited on August 29, 2024 and sell it today you would earn a total of 1,055 from holding ICICI Bank Limited or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ICICI Bank Limited vs. Spencers Retail Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Spencers Retail |
ICICI Bank and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Spencers Retail
The main advantage of trading using opposite ICICI Bank and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Spencers 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| ICICI Bank vs. Hemisphere Properties India | ICICI Bank vs. Juniper Hotels | ICICI Bank vs. Tata Communications Limited | ICICI Bank vs. Royal Orchid Hotels |
| Spencers Retail vs. Tata Consultancy Services | Spencers Retail vs. Quess Corp Limited | Spencers Retail vs. Reliance Industries Limited | Spencers Retail vs. SIS 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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