Correlation Between ICICI Securities and Lemon Tree
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By analyzing existing cross correlation between ICICI Securities Limited and Lemon Tree Hotels, you can compare the effects of market volatilities on ICICI Securities and Lemon Tree 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 Securities with a short position of Lemon Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Securities and Lemon Tree.
Diversification Opportunities for ICICI Securities and Lemon Tree
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between ICICI and Lemon is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Securities Limited and Lemon Tree Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lemon Tree Hotels and ICICI 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 ICICI Securities Limited are associated (or correlated) with Lemon Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lemon Tree Hotels has no effect on the direction of ICICI Securities i.e., ICICI Securities and Lemon Tree go up and down completely randomly.
Pair Corralation between ICICI Securities and Lemon Tree
Assuming the 90 days trading horizon ICICI Securities Limited is expected to generate 0.26 times more return on investment than Lemon Tree. However, ICICI Securities Limited is 3.83 times less risky than Lemon Tree. It trades about -0.01 of its potential returns per unit of risk. Lemon Tree Hotels is currently generating about -0.03 per unit of risk. If you would invest 81,515 in ICICI Securities Limited on November 28, 2024 and sell it today you would lose (270.00) from holding ICICI Securities Limited or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Securities Limited vs. Lemon Tree Hotels
Performance |
| Timeline |
| ICICI Securities |
| Lemon Tree Hotels |
ICICI Securities and Lemon Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Securities and Lemon Tree
The main advantage of trading using opposite ICICI Securities and Lemon Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Securities position performs unexpectedly, Lemon Tree 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 Lemon Tree will offset losses from the drop in Lemon Tree's long position.| ICICI Securities vs. Tamilnadu Telecommunication Limited | ICICI Securities vs. V Mart Retail Limited | ICICI Securities vs. Kavveri Telecom Products | ICICI Securities vs. Tata Communications Limited |
| Lemon Tree vs. AUTHUM INVESTMENT INFRASTRUCTU | Lemon Tree vs. Indraprastha Medical | Lemon Tree vs. Jindal Poly Investment | Lemon Tree vs. Sri Havisha Hospitality |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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