Correlation Between ICICI Securities and UTI Asset
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By analyzing existing cross correlation between ICICI Securities Limited and UTI Asset Management, you can compare the effects of market volatilities on ICICI Securities and UTI Asset 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 UTI Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Securities and UTI Asset.
Diversification Opportunities for ICICI Securities and UTI Asset
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ICICI and UTI is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Securities Limited and UTI Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTI Asset Management 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 UTI Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTI Asset Management has no effect on the direction of ICICI Securities i.e., ICICI Securities and UTI Asset go up and down completely randomly.
Pair Corralation between ICICI Securities and UTI Asset
Assuming the 90 days trading horizon ICICI Securities is expected to generate 1.13 times less return on investment than UTI Asset. But when comparing it to its historical volatility, ICICI Securities Limited is 1.1 times less risky than UTI Asset. It trades about 0.1 of its potential returns per unit of risk. UTI Asset Management is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 62,773 in UTI Asset Management on August 31, 2024 and sell it today you would earn a total of 65,962 from holding UTI Asset Management or generate 105.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
ICICI Securities Limited vs. UTI Asset Management
Performance |
| Timeline |
| ICICI Securities |
| UTI Asset Management |
ICICI Securities and UTI Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Securities and UTI Asset
The main advantage of trading using opposite ICICI Securities and UTI Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Securities position performs unexpectedly, UTI Asset 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 UTI Asset will offset losses from the drop in UTI Asset's long position.| ICICI Securities vs. Diligent Media | ICICI Securities vs. EMBASSY OFFICE PARKS | ICICI Securities vs. Cyber Media Research | ICICI Securities vs. HDFC Asset Management |
| UTI Asset vs. ICICI Securities Limited | UTI Asset vs. Nippon Life India | UTI Asset vs. Fortis Healthcare Limited | UTI Asset 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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