Correlation Between ICICI Lombard and Fortis Healthcare
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By analyzing existing cross correlation between ICICI Lombard General and Fortis Healthcare Limited, you can compare the effects of market volatilities on ICICI Lombard and Fortis Healthcare 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 Fortis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Lombard and Fortis Healthcare.
Diversification Opportunities for ICICI Lombard and Fortis Healthcare
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ICICI and Fortis is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Lombard General and Fortis Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortis Healthcare 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 Fortis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortis Healthcare has no effect on the direction of ICICI Lombard i.e., ICICI Lombard and Fortis Healthcare go up and down completely randomly.
Pair Corralation between ICICI Lombard and Fortis Healthcare
Assuming the 90 days trading horizon ICICI Lombard General is expected to under-perform the Fortis Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Lombard General is 1.6 times less risky than Fortis Healthcare. The stock trades about -0.19 of its potential returns per unit of risk. The Fortis Healthcare Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 56,185 in Fortis Healthcare Limited on August 31, 2024 and sell it today you would earn a total of 8,830 from holding Fortis Healthcare Limited or generate 15.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
ICICI Lombard General vs. Fortis Healthcare Limited
Performance |
| Timeline |
| ICICI Lombard General |
| Fortis Healthcare |
ICICI Lombard and Fortis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Lombard and Fortis Healthcare
The main advantage of trading using opposite ICICI Lombard and Fortis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Lombard position performs unexpectedly, Fortis Healthcare 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 Fortis Healthcare will offset losses from the drop in Fortis Healthcare's long position.| ICICI Lombard vs. Kavveri Telecom Products | ICICI Lombard vs. Manaksia Coated Metals | ICICI Lombard vs. Uniinfo Telecom Services | ICICI Lombard vs. Nahar Industrial Enterprises |
| Fortis Healthcare vs. HDFC Asset Management | Fortis Healthcare vs. Dhunseri Investments Limited | Fortis Healthcare vs. UTI Asset Management | Fortis Healthcare vs. Associated Alcohols Breweries |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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