Correlation Between ICICI Bank and AllianceBernstein
Can any of the company-specific risk be diversified away by investing in both ICICI Bank and AllianceBernstein 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 AllianceBernstein 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 AllianceBernstein Holding LP, you can compare the effects of market volatilities on ICICI Bank and AllianceBernstein 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 AllianceBernstein. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and AllianceBernstein.
Diversification Opportunities for ICICI Bank and AllianceBernstein
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ICICI and AllianceBernstein is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and AllianceBernstein Holding LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianceBernstein 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 AllianceBernstein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllianceBernstein has no effect on the direction of ICICI Bank i.e., ICICI Bank and AllianceBernstein go up and down completely randomly.
Pair Corralation between ICICI Bank and AllianceBernstein
Considering the 90-day investment horizon ICICI Bank Limited is expected to generate 0.78 times more return on investment than AllianceBernstein. However, ICICI Bank Limited is 1.29 times less risky than AllianceBernstein. It trades about 0.07 of its potential returns per unit of risk. AllianceBernstein Holding LP is currently generating about -0.02 per unit of risk. If you would invest 2,587 in ICICI Bank Limited on January 25, 2024 and sell it today you would earn a total of 42.00 from holding ICICI Bank Limited or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. AllianceBernstein Holding LP
Performance |
| Timeline |
| ICICI Bank Limited |
| AllianceBernstein |
ICICI Bank and AllianceBernstein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and AllianceBernstein
The main advantage of trading using opposite ICICI Bank and AllianceBernstein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, AllianceBernstein 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 AllianceBernstein will offset losses from the drop in AllianceBernstein's long position.| ICICI Bank vs. KeyCorp | ICICI Bank vs. First Mid Illinois | ICICI Bank vs. Finwise Bancorp | ICICI Bank vs. Home Bancorp |
| AllianceBernstein vs. Brightsphere Investment Group | AllianceBernstein vs. Affiliated Managers Group | AllianceBernstein vs. Bain Capital Specialty | AllianceBernstein vs. BlackRock Capital Allocation |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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