Correlation Between ICICI Bank and Suryoday Small
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By analyzing existing cross correlation between ICICI Bank Limited and Suryoday Small Finance, you can compare the effects of market volatilities on ICICI Bank and Suryoday Small 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 Suryoday Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Suryoday Small.
Diversification Opportunities for ICICI Bank and Suryoday Small
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ICICI and Suryoday is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Suryoday Small Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suryoday Small Finance 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 Suryoday Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suryoday Small Finance has no effect on the direction of ICICI Bank i.e., ICICI Bank and Suryoday Small go up and down completely randomly.
Pair Corralation between ICICI Bank and Suryoday Small
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.59 times more return on investment than Suryoday Small. However, ICICI Bank Limited is 1.7 times less risky than Suryoday Small. It trades about 0.07 of its potential returns per unit of risk. Suryoday Small Finance is currently generating about -0.1 per unit of risk. If you would invest 115,490 in ICICI Bank Limited on August 30, 2024 and sell it today you would earn a total of 13,145 from holding ICICI Bank Limited or generate 11.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
ICICI Bank Limited vs. Suryoday Small Finance
Performance |
| Timeline |
| ICICI Bank Limited |
| Suryoday Small Finance |
ICICI Bank and Suryoday Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Suryoday Small
The main advantage of trading using opposite ICICI Bank and Suryoday Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Suryoday Small 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 Suryoday Small will offset losses from the drop in Suryoday Small's long position.| ICICI Bank vs. Computer Age Management | ICICI Bank vs. FCS Software Solutions | ICICI Bank vs. Parag Milk Foods | ICICI Bank vs. Hindustan Foods Limited |
| Suryoday Small vs. Mangalore Chemicals Fertilizers | Suryoday Small vs. Indo Borax Chemicals | Suryoday Small vs. DMCC SPECIALITY CHEMICALS | Suryoday Small vs. Oriental Hotels 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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