Correlation Between ICICI Lombard and ILFS Investment
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By analyzing existing cross correlation between ICICI Lombard General and ILFS Investment Managers, you can compare the effects of market volatilities on ICICI Lombard and ILFS Investment 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 ILFS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Lombard and ILFS Investment.
Diversification Opportunities for ICICI Lombard and ILFS Investment
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and ILFS is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Lombard General and ILFS Investment Managers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ILFS Investment Managers 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 ILFS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ILFS Investment Managers has no effect on the direction of ICICI Lombard i.e., ICICI Lombard and ILFS Investment go up and down completely randomly.
Pair Corralation between ICICI Lombard and ILFS Investment
Assuming the 90 days trading horizon ICICI Lombard General is expected to generate 0.57 times more return on investment than ILFS Investment. However, ICICI Lombard General is 1.74 times less risky than ILFS Investment. It trades about -0.11 of its potential returns per unit of risk. ILFS Investment Managers is currently generating about -0.17 per unit of risk. If you would invest 191,630 in ICICI Lombard General on September 2, 2024 and sell it today you would lose (5,445) from holding ICICI Lombard General or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
ICICI Lombard General vs. ILFS Investment Managers
Performance |
| Timeline |
| ICICI Lombard General |
| ILFS Investment Managers |
ICICI Lombard and ILFS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Lombard and ILFS Investment
The main advantage of trading using opposite ICICI Lombard and ILFS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Lombard position performs unexpectedly, ILFS Investment 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 ILFS Investment will offset losses from the drop in ILFS Investment's long position.| ICICI Lombard vs. Ankit Metal Power | ICICI Lombard vs. Tips Music Limited | ICICI Lombard vs. Indian Metals Ferro | ICICI Lombard vs. Ratnamani Metals Tubes |
| ILFS Investment vs. Kingfa Science Technology | ILFS Investment vs. Rico Auto Industries | ILFS Investment vs. GACM Technologies Limited | ILFS Investment vs. COSMO FIRST LIMITED |
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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