Correlation Between Sky Gold and ICICI Bank
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By analyzing existing cross correlation between Sky Gold Limited and ICICI Bank Limited, you can compare the effects of market volatilities on Sky Gold 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 Sky Gold with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sky Gold and ICICI Bank.
Diversification Opportunities for Sky Gold and ICICI Bank
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sky and ICICI is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sky Gold 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 Sky Gold 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 Sky Gold 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 Sky Gold i.e., Sky Gold and ICICI Bank go up and down completely randomly.
Pair Corralation between Sky Gold and ICICI Bank
Assuming the 90 days trading horizon Sky Gold Limited is expected to generate 45.15 times more return on investment than ICICI Bank. However, Sky Gold is 45.15 times more volatile than ICICI Bank Limited. It trades about 0.07 of its potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.08 per unit of risk. If you would invest 11,218 in Sky Gold Limited on November 4, 2024 and sell it today you would earn a total of 22,467 from holding Sky Gold Limited or generate 200.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Sky Gold Limited vs. ICICI Bank Limited
Performance |
| Timeline |
| Sky Gold Limited |
| ICICI Bank Limited |
Sky Gold and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sky Gold and ICICI Bank
The main advantage of trading using opposite Sky Gold and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sky Gold 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.| Sky Gold vs. Privi Speciality Chemicals | Sky Gold vs. Country Club Hospitality | Sky Gold vs. Zydus Wellness Limited | Sky Gold vs. Zota Health Care |
| ICICI Bank vs. The Investment Trust | ICICI Bank vs. The State Trading | ICICI Bank vs. Cholamandalam Investment and | ICICI Bank vs. Dodla Dairy Limited |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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