Correlation Between ICICI Bank and Unitech
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By analyzing existing cross correlation between ICICI Bank Limited and Unitech Limited, you can compare the effects of market volatilities on ICICI Bank and Unitech 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 Unitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Unitech.
Diversification Opportunities for ICICI Bank and Unitech
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and Unitech is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Unitech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unitech 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 Unitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unitech Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Unitech go up and down completely randomly.
Pair Corralation between ICICI Bank and Unitech
Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Unitech. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 3.16 times less risky than Unitech. The stock trades about -0.19 of its potential returns per unit of risk. The Unitech Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 911.00 in Unitech Limited on October 26, 2024 and sell it today you would earn a total of 45.00 from holding Unitech Limited or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. Unitech Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Unitech Limited |
ICICI Bank and Unitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Unitech
The main advantage of trading using opposite ICICI Bank and Unitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Unitech 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 Unitech will offset losses from the drop in Unitech's long position.| ICICI Bank vs. Generic Engineering Construction | ICICI Bank vs. Bodhi Tree Multimedia | ICICI Bank vs. Shemaroo Entertainment Limited | ICICI Bank vs. Salzer Electronics Limited |
| Unitech vs. Reliance Industries Limited | Unitech vs. Oil Natural Gas | Unitech vs. ICICI Bank Limited | Unitech vs. Bharti Airtel 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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