Correlation Between UTI Asset and ICICI Bank
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By analyzing existing cross correlation between UTI Asset Management and ICICI Bank Limited, you can compare the effects of market volatilities on UTI Asset 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 UTI Asset with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of UTI Asset and ICICI Bank.
Diversification Opportunities for UTI Asset and ICICI Bank
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UTI and ICICI is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding UTI Asset Management 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 UTI Asset 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 UTI Asset Management 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 UTI Asset i.e., UTI Asset and ICICI Bank go up and down completely randomly.
Pair Corralation between UTI Asset and ICICI Bank
Assuming the 90 days trading horizon UTI Asset Management is expected to generate 1.76 times more return on investment than ICICI Bank. However, UTI Asset is 1.76 times more volatile than ICICI Bank Limited. It trades about 0.06 of its potential returns per unit of risk. ICICI Bank Limited is currently generating about 0.07 per unit of risk. If you would invest 66,457 in UTI Asset Management on November 6, 2024 and sell it today you would earn a total of 37,393 from holding UTI Asset Management or generate 56.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.38% |
| Values | Daily Returns |
UTI Asset Management vs. ICICI Bank Limited
Performance |
| Timeline |
| UTI Asset Management |
| ICICI Bank Limited |
UTI Asset and ICICI Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UTI Asset and ICICI Bank
The main advantage of trading using opposite UTI Asset and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UTI Asset 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.| UTI Asset vs. MRF Limited | UTI Asset vs. The Orissa Minerals | UTI Asset vs. Honeywell Automation India | UTI Asset vs. Page Industries Limited |
| ICICI Bank vs. Spencers Retail Limited | ICICI Bank vs. Zota Health Care | ICICI Bank vs. V2 Retail Limited | ICICI Bank vs. Apollo Hospitals Enterprise |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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