Correlation Between Hospital Mater and ICICI Bank
Can any of the company-specific risk be diversified away by investing in both Hospital Mater and ICICI Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hospital Mater and ICICI Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hospital Mater Dei and ICICI Bank Limited, you can compare the effects of market volatilities on Hospital Mater 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 Hospital Mater with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Mater and ICICI Bank.
Diversification Opportunities for Hospital Mater and ICICI Bank
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hospital and ICICI is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Mater Dei 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 Hospital Mater 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 Hospital Mater Dei 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 Hospital Mater i.e., Hospital Mater and ICICI Bank go up and down completely randomly.
Pair Corralation between Hospital Mater and ICICI Bank
Assuming the 90 days trading horizon Hospital Mater Dei is expected to under-perform the ICICI Bank. In addition to that, Hospital Mater is 2.2 times more volatile than ICICI Bank Limited. It trades about -0.06 of its total potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.08 per unit of volatility. If you would invest 11,052 in ICICI Bank Limited on October 27, 2024 and sell it today you would earn a total of 5,308 from holding ICICI Bank Limited or generate 48.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.79% |
| Values | Daily Returns |
Hospital Mater Dei vs. ICICI Bank Limited
Performance |
| Timeline |
| Hospital Mater Dei |
| ICICI Bank Limited |
Hospital Mater and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hospital Mater and ICICI Bank
The main advantage of trading using opposite Hospital Mater and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hospital Mater 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.| Hospital Mater vs. Verizon Communications | Hospital Mater vs. STMicroelectronics NV | Hospital Mater vs. Bemobi Mobile Tech | Hospital Mater vs. Costco Wholesale |
| ICICI Bank vs. Alaska Air Group, | ICICI Bank vs. Tres Tentos Agroindustrial | ICICI Bank vs. Metalrgica Riosulense SA | ICICI Bank vs. The Trade Desk |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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