Correlation Between Shipping and ICICI Bank

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Shipping 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 Shipping and ICICI Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shipping and ICICI Bank Limited, you can compare the effects of market volatilities on Shipping 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 Shipping with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shipping and ICICI Bank.

Diversification Opportunities for Shipping and ICICI Bank

-0.1
  Correlation Coefficient

Good diversification

The 3 months correlation between Shipping and ICICI is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Shipping 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 Shipping 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 Shipping 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 Shipping i.e., Shipping and ICICI Bank go up and down completely randomly.

Pair Corralation between Shipping and ICICI Bank

Assuming the 90 days trading horizon Shipping is expected to generate 2.8 times more return on investment than ICICI Bank. However, Shipping is 2.8 times more volatile than ICICI Bank Limited. It trades about 0.17 of its potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.1 per unit of risk. If you would invest  21,328  in Shipping on September 3, 2024 and sell it today you would earn a total of  2,159  from holding Shipping or generate 10.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.0%
ValuesDaily Returns

Shipping  vs.  ICICI Bank Limited

 Performance 
       Timeline  
Shipping 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Shipping has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
ICICI Bank Limited 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in ICICI Bank Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, ICICI Bank is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Shipping and ICICI Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shipping and ICICI Bank

The main advantage of trading using opposite Shipping and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shipping 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.
Shipping vs. Sintex Plastics Technology
Shipping vs. Shyam Metalics and
Shipping vs. Hilton Metal Forging
Shipping vs. Sonata Software Limited
The idea behind Shipping and ICICI Bank Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
ICICI Bank vs. Reliance Industries Limited
ICICI Bank vs. Shipping
ICICI Bank vs. Indo Borax Chemicals
ICICI Bank vs. Kingfa Science Technology
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY