Correlation Between ICICI Lombard and ICICI Securities
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By analyzing existing cross correlation between ICICI Lombard General and ICICI Securities Limited, you can compare the effects of market volatilities on ICICI Lombard and ICICI Securities 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 ICICI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Lombard and ICICI Securities.
Diversification Opportunities for ICICI Lombard and ICICI Securities
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICICI and ICICI is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Lombard General and ICICI Securities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Securities 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 ICICI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Securities has no effect on the direction of ICICI Lombard i.e., ICICI Lombard and ICICI Securities go up and down completely randomly.
Pair Corralation between ICICI Lombard and ICICI Securities
Assuming the 90 days trading horizon ICICI Lombard General is expected to under-perform the ICICI Securities. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Lombard General is 1.0 times less risky than ICICI Securities. The stock trades about -0.19 of its potential returns per unit of risk. The ICICI Securities Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 83,350 in ICICI Securities Limited on August 31, 2024 and sell it today you would earn a total of 3,265 from holding ICICI Securities Limited or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
ICICI Lombard General vs. ICICI Securities Limited
Performance |
| Timeline |
| ICICI Lombard General |
| ICICI Securities |
ICICI Lombard and ICICI Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Lombard and ICICI Securities
The main advantage of trading using opposite ICICI Lombard and ICICI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Lombard position performs unexpectedly, ICICI Securities 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 ICICI Securities will offset losses from the drop in ICICI Securities' 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 |
| ICICI Securities vs. Diligent Media | ICICI Securities vs. EMBASSY OFFICE PARKS | ICICI Securities vs. Cyber Media Research | ICICI Securities vs. HDFC Asset Management |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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