Correlation Between Bank of Maharashtra and ICICI Securities
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By analyzing existing cross correlation between Bank of Maharashtra and ICICI Securities Limited, you can compare the effects of market volatilities on Bank of Maharashtra and ICICI Securities 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 Bank of Maharashtra with a short position of ICICI Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Maharashtra and ICICI Securities.
Diversification Opportunities for Bank of Maharashtra and ICICI Securities
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and ICICI is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Maharashtra and ICICI Securities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICICI Securities and Bank of Maharashtra 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 Bank of Maharashtra are associated (or correlated) with ICICI Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICICI Securities has no effect on the direction of Bank of Maharashtra i.e., Bank of Maharashtra and ICICI Securities go up and down completely randomly.
Pair Corralation between Bank of Maharashtra and ICICI Securities
Assuming the 90 days trading horizon Bank of Maharashtra is expected to generate 2.02 times more return on investment than ICICI Securities. However, Bank of Maharashtra is 2.02 times more volatile than ICICI Securities Limited. It trades about 0.08 of its potential returns per unit of risk. ICICI Securities Limited is currently generating about 0.05 per unit of risk. If you would invest 5,543 in Bank of Maharashtra on September 2, 2024 and sell it today you would earn a total of 160.00 from holding Bank of Maharashtra or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Maharashtra vs. ICICI Securities Limited
Performance |
| Timeline |
| Bank of Maharashtra |
| ICICI Securities |
Bank of Maharashtra and ICICI Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Maharashtra and ICICI Securities
The main advantage of trading using opposite Bank of Maharashtra and ICICI Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Maharashtra position performs unexpectedly, ICICI Securities 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 Securities will offset losses from the drop in ICICI Securities' long position.| Bank of Maharashtra vs. Reliance Industries Limited | Bank of Maharashtra vs. State Bank of | Bank of Maharashtra vs. Oil Natural Gas |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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