Correlation Between Kohinoor Foods and ICICI Bank
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By analyzing existing cross correlation between Kohinoor Foods Limited and ICICI Bank Limited, you can compare the effects of market volatilities on Kohinoor Foods and ICICI Bank 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 Kohinoor Foods with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and ICICI Bank.
Diversification Opportunities for Kohinoor Foods and ICICI Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kohinoor and ICICI is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods Limited and ICICI Bank Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Bank Limited and Kohinoor Foods 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 Kohinoor Foods Limited are associated (or correlated) with ICICI Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Bank Limited has no effect on the direction of Kohinoor Foods i.e., Kohinoor Foods and ICICI Bank go up and down completely randomly.
Pair Corralation between Kohinoor Foods and ICICI Bank
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to under-perform the ICICI Bank. In addition to that, Kohinoor Foods is 2.94 times more volatile than ICICI Bank Limited. It trades about -0.02 of its total potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.07 per unit of volatility. If you would invest 84,198 in ICICI Bank Limited on October 28, 2024 and sell it today you would earn a total of 36,722 from holding ICICI Bank Limited or generate 43.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. ICICI Bank Limited
Performance |
| Timeline |
| Kohinoor Foods |
| ICICI Bank Limited |
Kohinoor Foods and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and ICICI Bank
The main advantage of trading using opposite Kohinoor Foods and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods position performs unexpectedly, ICICI Bank 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 Bank will offset losses from the drop in ICICI Bank's long position.| Kohinoor Foods vs. Gangotri Textiles Limited | Kohinoor Foods vs. Hemisphere Properties India | Kohinoor Foods vs. Kingfa Science Technology | Kohinoor Foods vs. Rico Auto Industries |
| ICICI Bank vs. LT Technology Services | ICICI Bank vs. 21st Century Management | ICICI Bank vs. Indian Metals Ferro | ICICI Bank vs. UTI Asset Management |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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