Correlation Between ICICI Prudential and LIQUID1
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By analyzing existing cross correlation between ICICI Prudential Nifty and LIQUID1, you can compare the effects of market volatilities on ICICI Prudential and LIQUID1 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 Prudential with a short position of LIQUID1. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Prudential and LIQUID1.
Diversification Opportunities for ICICI Prudential and LIQUID1
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ICICI and LIQUID1 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Prudential Nifty and LIQUID1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIQUID1 and ICICI Prudential 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 Prudential Nifty are associated (or correlated) with LIQUID1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIQUID1 has no effect on the direction of ICICI Prudential i.e., ICICI Prudential and LIQUID1 go up and down completely randomly.
Pair Corralation between ICICI Prudential and LIQUID1
Assuming the 90 days trading horizon ICICI Prudential Nifty is expected to generate 48.8 times more return on investment than LIQUID1. However, ICICI Prudential is 48.8 times more volatile than LIQUID1. It trades about 0.11 of its potential returns per unit of risk. LIQUID1 is currently generating about 1.36 per unit of risk. If you would invest 26,870 in ICICI Prudential Nifty on September 12, 2024 and sell it today you would earn a total of 514.00 from holding ICICI Prudential Nifty or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Prudential Nifty vs. LIQUID1
Performance |
| Timeline |
| ICICI Prudential Nifty |
| LIQUID1 |
ICICI Prudential and LIQUID1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Prudential and LIQUID1
The main advantage of trading using opposite ICICI Prudential and LIQUID1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Prudential position performs unexpectedly, LIQUID1 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 LIQUID1 will offset losses from the drop in LIQUID1's long position.| ICICI Prudential vs. Kingfa Science Technology | ICICI Prudential vs. GTL Limited | ICICI Prudential vs. Agro Phos India | ICICI Prudential vs. Indo Amines Limited |
| LIQUID1 vs. NIFTYETF | LIQUID1 vs. ITETF | LIQUID1 vs. ICICI Prudential Nifty | LIQUID1 vs. Nippon India Mutual |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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