Correlation Between IIFL Securities and ICICI Lombard
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By analyzing existing cross correlation between IIFL Securities Limited and ICICI Lombard General, you can compare the effects of market volatilities on IIFL Securities and ICICI Lombard 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 IIFL Securities with a short position of ICICI Lombard. Check out your portfolio center. Please also check ongoing floating volatility patterns of IIFL Securities and ICICI Lombard.
Diversification Opportunities for IIFL Securities and ICICI Lombard
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between IIFL and ICICI is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding IIFL Securities Limited and ICICI Lombard General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Lombard General and IIFL Securities 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 IIFL Securities Limited are associated (or correlated) with ICICI Lombard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Lombard General has no effect on the direction of IIFL Securities i.e., IIFL Securities and ICICI Lombard go up and down completely randomly.
Pair Corralation between IIFL Securities and ICICI Lombard
Assuming the 90 days trading horizon IIFL Securities Limited is expected to generate 3.43 times more return on investment than ICICI Lombard. However, IIFL Securities is 3.43 times more volatile than ICICI Lombard General. It trades about 0.08 of its potential returns per unit of risk. ICICI Lombard General is currently generating about -0.19 per unit of risk. If you would invest 28,085 in IIFL Securities Limited on September 2, 2024 and sell it today you would earn a total of 4,550 from holding IIFL Securities Limited or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
IIFL Securities Limited vs. ICICI Lombard General
Performance |
| Timeline |
| IIFL Securities |
| ICICI Lombard General |
IIFL Securities and ICICI Lombard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IIFL Securities and ICICI Lombard
The main advantage of trading using opposite IIFL Securities and ICICI Lombard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IIFL Securities position performs unexpectedly, ICICI Lombard 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 Lombard will offset losses from the drop in ICICI Lombard's long position.| IIFL Securities vs. Healthcare Global Enterprises | IIFL Securities vs. Country Club Hospitality | IIFL Securities vs. Sakar Healthcare Limited | IIFL Securities vs. Sarveshwar Foods Limited |
| ICICI Lombard vs. Ankit Metal Power | ICICI Lombard vs. Tips Music Limited | ICICI Lombard vs. Indian Metals Ferro | ICICI Lombard vs. Ratnamani Metals Tubes |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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