Correlation Between ICICI Bank and Yes Bank
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By analyzing existing cross correlation between ICICI Bank Limited and Yes Bank Limited, you can compare the effects of market volatilities on ICICI Bank and Yes Bank 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 Yes Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Yes Bank.
Diversification Opportunities for ICICI Bank and Yes Bank
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICICI and Yes is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Yes Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Bank 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 Yes Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Bank Limited has no effect on the direction of ICICI Bank i.e., ICICI Bank and Yes Bank go up and down completely randomly.
Pair Corralation between ICICI Bank and Yes Bank
Assuming the 90 days trading horizon ICICI Bank is expected to generate 1.69 times less return on investment than Yes Bank. But when comparing it to its historical volatility, ICICI Bank Limited is 2.14 times less risky than Yes Bank. It trades about 0.28 of its potential returns per unit of risk. Yes Bank Limited is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,989 in Yes Bank Limited on September 12, 2024 and sell it today you would earn a total of 171.00 from holding Yes Bank Limited or generate 8.6% 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. Yes Bank Limited
Performance |
| Timeline |
| ICICI Bank Limited |
| Yes Bank Limited |
ICICI Bank and Yes Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and Yes Bank
The main advantage of trading using opposite ICICI Bank and Yes Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Yes Bank 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 Yes Bank will offset losses from the drop in Yes Bank's long position.| ICICI Bank vs. Yes Bank Limited | ICICI Bank vs. Indian Oil | ICICI Bank vs. Indo Borax Chemicals | ICICI Bank vs. Kingfa Science Technology |
| Yes Bank vs. Cybertech Systems And | Yes Bank vs. Unitech Limited | Yes Bank vs. Uniinfo Telecom Services | Yes Bank vs. Pritish Nandy Communications |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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