Correlation Between ICICI Lombard and Investment Trust
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By analyzing existing cross correlation between ICICI Lombard General and The Investment Trust, you can compare the effects of market volatilities on ICICI Lombard and Investment Trust 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 Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Lombard and Investment Trust.
Diversification Opportunities for ICICI Lombard and Investment Trust
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICICI and Investment is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Lombard General and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust 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 Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of ICICI Lombard i.e., ICICI Lombard and Investment Trust go up and down completely randomly.
Pair Corralation between ICICI Lombard and Investment Trust
Assuming the 90 days trading horizon ICICI Lombard is expected to generate 2.5 times less return on investment than Investment Trust. But when comparing it to its historical volatility, ICICI Lombard General is 1.85 times less risky than Investment Trust. It trades about 0.09 of its potential returns per unit of risk. The Investment Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 13,775 in The Investment Trust on August 31, 2024 and sell it today you would earn a total of 6,459 from holding The Investment Trust or generate 46.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
ICICI Lombard General vs. The Investment Trust
Performance |
| Timeline |
| ICICI Lombard General |
| Investment Trust |
ICICI Lombard and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Lombard and Investment Trust
The main advantage of trading using opposite ICICI Lombard and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Lombard position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust'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 |
| Investment Trust vs. ICICI Securities Limited | Investment Trust vs. Nippon Life India | Investment Trust vs. Fortis Healthcare Limited | Investment Trust vs. ICICI Lombard General |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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