Correlation Between ICICI Bank and VIP Clothing
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By analyzing existing cross correlation between ICICI Bank Limited and VIP Clothing Limited, you can compare the effects of market volatilities on ICICI Bank and VIP Clothing 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 VIP Clothing. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and VIP Clothing.
Diversification Opportunities for ICICI Bank and VIP Clothing
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and VIP is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and VIP Clothing Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIP Clothing 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 VIP Clothing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIP Clothing Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and VIP Clothing go up and down completely randomly.
Pair Corralation between ICICI Bank and VIP Clothing
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.27 times more return on investment than VIP Clothing. However, ICICI Bank Limited is 3.72 times less risky than VIP Clothing. It trades about -0.24 of its potential returns per unit of risk. VIP Clothing Limited is currently generating about -0.1 per unit of risk. If you would invest 128,950 in ICICI Bank Limited on October 20, 2024 and sell it today you would lose (6,405) from holding ICICI Bank Limited or give up 4.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. VIP Clothing Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| VIP Clothing Limited |
ICICI Bank and VIP Clothing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and VIP Clothing
The main advantage of trading using opposite ICICI Bank and VIP Clothing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, VIP Clothing 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 VIP Clothing will offset losses from the drop in VIP Clothing's long position.| ICICI Bank vs. Sintex Plastics Technology | ICICI Bank vs. Som Distilleries Breweries | ICICI Bank vs. Man Infraconstruction Limited | ICICI Bank vs. Sportking India Limited |
| VIP Clothing vs. Spencers Retail Limited | VIP Clothing vs. Neogen Chemicals Limited | VIP Clothing vs. Future Retail Limited | VIP Clothing vs. General Insurance |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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