Correlation Between Saksoft and ICICI Bank
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By analyzing existing cross correlation between Saksoft Limited and ICICI Bank Limited, you can compare the effects of market volatilities on Saksoft 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 Saksoft with a short position of ICICI Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saksoft and ICICI Bank.
Diversification Opportunities for Saksoft and ICICI Bank
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Saksoft and ICICI is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Saksoft 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 Saksoft 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 Saksoft 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 Saksoft i.e., Saksoft and ICICI Bank go up and down completely randomly.
Pair Corralation between Saksoft and ICICI Bank
Assuming the 90 days trading horizon Saksoft Limited is expected to generate 2.05 times more return on investment than ICICI Bank. However, Saksoft is 2.05 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 -0.02 per unit of risk. If you would invest 21,366 in Saksoft Limited on September 26, 2024 and sell it today you would earn a total of 381.00 from holding Saksoft Limited or generate 1.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Saksoft Limited vs. ICICI Bank Limited
Performance |
Timeline |
Saksoft Limited |
ICICI Bank Limited |
Saksoft and ICICI Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Saksoft and ICICI Bank
The main advantage of trading using opposite Saksoft and ICICI Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saksoft 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.Saksoft vs. State Bank of | Saksoft vs. Life Insurance | Saksoft vs. HDFC Bank Limited | Saksoft vs. ICICI Bank Limited |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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