Correlation Between ICICI Lombard and Repco Home
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By analyzing existing cross correlation between ICICI Lombard General and Repco Home Finance, you can compare the effects of market volatilities on ICICI Lombard and Repco Home 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 Repco Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Lombard and Repco Home.
Diversification Opportunities for ICICI Lombard and Repco Home
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ICICI and Repco is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Lombard General and Repco Home Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repco Home Finance 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 Repco Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repco Home Finance has no effect on the direction of ICICI Lombard i.e., ICICI Lombard and Repco Home go up and down completely randomly.
Pair Corralation between ICICI Lombard and Repco Home
Assuming the 90 days trading horizon ICICI Lombard General is expected to generate 0.59 times more return on investment than Repco Home. However, ICICI Lombard General is 1.68 times less risky than Repco Home. It trades about 0.12 of its potential returns per unit of risk. Repco Home Finance is currently generating about 0.05 per unit of risk. If you would invest 152,628 in ICICI Lombard General on September 2, 2024 and sell it today you would earn a total of 33,557 from holding ICICI Lombard General or generate 21.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
ICICI Lombard General vs. Repco Home Finance
Performance |
| Timeline |
| ICICI Lombard General |
| Repco Home Finance |
ICICI Lombard and Repco Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Lombard and Repco Home
The main advantage of trading using opposite ICICI Lombard and Repco Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Lombard position performs unexpectedly, Repco Home 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 Repco Home will offset losses from the drop in Repco Home'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 |
| Repco Home vs. UFO Moviez India | Repco Home vs. Computer Age Management | Repco Home vs. Niraj Ispat Industries | Repco Home vs. SIL Investments 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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