Correlation Between ICICI Bank and Summit Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between ICICI Bank Limited and Summit Securities Limited, you can compare the effects of market volatilities on ICICI Bank and Summit Securities 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 Summit Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and Summit Securities.
Diversification Opportunities for ICICI Bank and Summit Securities
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and Summit is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and Summit Securities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Securities 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 Summit Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Securities has no effect on the direction of ICICI Bank i.e., ICICI Bank and Summit Securities go up and down completely randomly.
Pair Corralation between ICICI Bank and Summit Securities
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.35 times more return on investment than Summit Securities. However, ICICI Bank Limited is 2.83 times less risky than Summit Securities. It trades about -0.26 of its potential returns per unit of risk. Summit Securities Limited is currently generating about -0.26 per unit of risk. If you would invest 132,350 in ICICI Bank Limited on October 9, 2024 and sell it today you would lose (5,940) from holding ICICI Bank Limited or give up 4.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ICICI Bank Limited vs. Summit Securities Limited
Performance |
Timeline |
ICICI Bank Limited |
Summit Securities |
ICICI Bank and Summit Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICICI Bank and Summit Securities
The main advantage of trading using opposite ICICI Bank and Summit Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, Summit Securities 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 Summit Securities will offset losses from the drop in Summit Securities' long position.ICICI Bank vs. Fertilizers and Chemicals | ICICI Bank vs. Styrenix Performance Materials | ICICI Bank vs. Omkar Speciality Chemicals | ICICI Bank vs. Fortis Healthcare Limited |
Summit Securities vs. G Tec Jainx Education | Summit Securities vs. Network18 Media Investments | Summit Securities vs. Golden Tobacco Limited | Summit Securities vs. AUTHUM INVESTMENT INFRASTRUCTU |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |