Correlation Between ICICI Lombard and Pritish Nandy
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By analyzing existing cross correlation between ICICI Lombard General and Pritish Nandy Communications, you can compare the effects of market volatilities on ICICI Lombard and Pritish Nandy 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 Lombard with a short position of Pritish Nandy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Lombard and Pritish Nandy.
Diversification Opportunities for ICICI Lombard and Pritish Nandy
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICICI and Pritish is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Lombard General and Pritish Nandy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pritish Nandy Commun and ICICI Lombard 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 Lombard General are associated (or correlated) with Pritish Nandy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pritish Nandy Commun has no effect on the direction of ICICI Lombard i.e., ICICI Lombard and Pritish Nandy go up and down completely randomly.
Pair Corralation between ICICI Lombard and Pritish Nandy
Assuming the 90 days trading horizon ICICI Lombard General is expected to generate 0.49 times more return on investment than Pritish Nandy. However, ICICI Lombard General is 2.04 times less risky than Pritish Nandy. It trades about 0.07 of its potential returns per unit of risk. Pritish Nandy Communications is currently generating about -0.32 per unit of risk. If you would invest 190,215 in ICICI Lombard General on October 21, 2024 and sell it today you would earn a total of 4,660 from holding ICICI Lombard General or generate 2.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
ICICI Lombard General vs. Pritish Nandy Communications
Performance |
Timeline |
ICICI Lombard General |
Pritish Nandy Commun |
ICICI Lombard and Pritish Nandy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICICI Lombard and Pritish Nandy
The main advantage of trading using opposite ICICI Lombard and Pritish Nandy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Lombard position performs unexpectedly, Pritish Nandy 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 Pritish Nandy will offset losses from the drop in Pritish Nandy's long position.ICICI Lombard vs. Tata Consultancy Services | ICICI Lombard vs. Quess Corp Limited | ICICI Lombard vs. Reliance Industries Limited | ICICI Lombard vs. Infosys Limited |
Pritish Nandy vs. Indian Metals Ferro | Pritish Nandy vs. Dev Information Technology | Pritish Nandy vs. Jindal Poly Investment | Pritish Nandy vs. Vertoz Advertising 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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