Correlation Between ICICI Lombard and Advani Hotels
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By analyzing existing cross correlation between ICICI Lombard General and Advani Hotels Resorts, you can compare the effects of market volatilities on ICICI Lombard and Advani Hotels 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 Lombard with a short position of Advani Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Lombard and Advani Hotels.
Diversification Opportunities for ICICI Lombard and Advani Hotels
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ICICI and Advani is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Lombard General and Advani Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advani Hotels Resorts and ICICI Lombard 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 Lombard General are associated (or correlated) with Advani Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advani Hotels Resorts has no effect on the direction of ICICI Lombard i.e., ICICI Lombard and Advani Hotels go up and down completely randomly.
Pair Corralation between ICICI Lombard and Advani Hotels
Assuming the 90 days trading horizon ICICI Lombard General is expected to under-perform the Advani Hotels. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Lombard General is 1.89 times less risky than Advani Hotels. The stock trades about -0.18 of its potential returns per unit of risk. The Advani Hotels Resorts is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,033 in Advani Hotels Resorts on November 28, 2024 and sell it today you would lose (79.00) from holding Advani Hotels Resorts or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Lombard General vs. Advani Hotels Resorts
Performance |
| Timeline |
| ICICI Lombard General |
| Advani Hotels Resorts |
ICICI Lombard and Advani Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Lombard and Advani Hotels
The main advantage of trading using opposite ICICI Lombard and Advani Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Lombard position performs unexpectedly, Advani Hotels 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 Advani Hotels will offset losses from the drop in Advani Hotels' long position.| ICICI Lombard vs. Manali Petrochemicals Limited | ICICI Lombard vs. Computer Age Management | ICICI Lombard vs. TECIL Chemicals and | ICICI Lombard vs. Dharani SugarsChemicals Limited |
| Advani Hotels vs. Bharatiya Global Infomedia | Advani Hotels vs. HT Media Limited | Advani Hotels vs. Baazar Style Retail | Advani Hotels vs. Bodhi Tree Multimedia |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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