Correlation Between Motilal Oswal and ICICI Bank
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By analyzing existing cross correlation between Motilal Oswal Financial and ICICI Bank Limited, you can compare the effects of market volatilities on Motilal Oswal 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 Motilal Oswal with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motilal Oswal and ICICI Bank.
Diversification Opportunities for Motilal Oswal and ICICI Bank
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Motilal and ICICI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Motilal Oswal Financial 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 Motilal Oswal 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 Motilal Oswal Financial 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 Motilal Oswal i.e., Motilal Oswal and ICICI Bank go up and down completely randomly.
Pair Corralation between Motilal Oswal and ICICI Bank
Assuming the 90 days trading horizon Motilal Oswal Financial is expected to generate 2.36 times more return on investment than ICICI Bank. However, Motilal Oswal is 2.36 times more volatile than ICICI Bank Limited. It trades about -0.03 of its potential returns per unit of risk. ICICI Bank Limited is currently generating about -0.09 per unit of risk. If you would invest 92,265 in Motilal Oswal Financial on August 31, 2024 and sell it today you would lose (1,960) from holding Motilal Oswal Financial or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Motilal Oswal Financial vs. ICICI Bank Limited
Performance |
| Timeline |
| Motilal Oswal Financial |
| ICICI Bank Limited |
Motilal Oswal and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Motilal Oswal and ICICI Bank
The main advantage of trading using opposite Motilal Oswal and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motilal Oswal 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.| Motilal Oswal vs. ICICI Securities Limited | Motilal Oswal vs. Nippon Life India | Motilal Oswal vs. Fortis Healthcare Limited | Motilal Oswal vs. ICICI Lombard General |
| ICICI Bank vs. ICICI Securities Limited | ICICI Bank vs. Nippon Life India | ICICI Bank vs. Fortis Healthcare Limited | ICICI Bank 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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