Correlation Between ICICI Bank and Xelpmoc Design

Can any of the company-specific risk be diversified away by investing in both ICICI Bank and Xelpmoc Design 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 ICICI Bank and Xelpmoc Design into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ICICI Bank Limited and Xelpmoc Design And, you can compare the effects of market volatilities on ICICI Bank and Xelpmoc Design 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 ICICI Bank with a short position of Xelpmoc Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Xelpmoc Design.

Diversification Opportunities for ICICI Bank and Xelpmoc Design

-0.2

Correlation Coefficient

ICICI Bank  Xelpmoc Design

Good diversification

The 3 months correlation between ICICI and Xelpmoc is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Xelpmoc Design And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xelpmoc Design And and ICICI Bank 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 ICICI Bank Limited are associated (or correlated) with Xelpmoc Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xelpmoc Design And has no effect on the direction of ICICI Bank i.e., ICICI Bank and Xelpmoc Design go up and down completely randomly.

Pair Corralation between ICICI Bank and Xelpmoc Design

Assuming the 90 days trading horizon ICICI Bank Limited is expected to under-perform the Xelpmoc Design. But the stock apears to be less risky and, when comparing its historical volatility, ICICI Bank Limited is 3.21 times less risky than Xelpmoc Design. The stock trades about 0.0 of its potential returns per unit of risk. The Xelpmoc Design And is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  11,902  in Xelpmoc Design And on September 27, 2024 and sell it today you would earn a total of  1,937  from holding Xelpmoc Design And or generate 16.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

ICICI Bank Limited  vs.  Xelpmoc Design And

ICICI Bank Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ICICI Bank Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ICICI Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Xelpmoc Design And

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Xelpmoc Design And are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain primary indicators, Xelpmoc Design exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ICICI Bank and Xelpmoc Design

The main advantage of trading using opposite ICICI Bank and Xelpmoc Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Xelpmoc Design 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 Xelpmoc Design will offset losses from the drop in Xelpmoc Design's long position.

The idea behind ICICI Bank Limited and Xelpmoc Design And 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.

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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.