Correlation Between ICICI Bank and C3 Ai
Can any of the company-specific risk be diversified away by investing in both ICICI Bank and C3 Ai 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 C3 Ai 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 C3 Ai Inc, you can compare the effects of market volatilities on ICICI Bank and C3 Ai 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 C3 Ai. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and C3 Ai.
Diversification Opportunities for ICICI Bank and C3 Ai
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICICI and C3 Ai is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and C3 Ai Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C3 Ai Inc 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 C3 Ai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C3 Ai Inc has no effect on the direction of ICICI Bank i.e., ICICI Bank and C3 Ai go up and down completely randomly.
Pair Corralation between ICICI Bank and C3 Ai
Considering the 90-day investment horizon ICICI Bank is expected to generate 2.62 times less return on investment than C3 Ai. But when comparing it to its historical volatility, ICICI Bank Limited is 4.33 times less risky than C3 Ai. It trades about 0.05 of its potential returns per unit of risk. C3 Ai Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,892 in C3 Ai Inc on January 20, 2024 and sell it today you would earn a total of 195.00 from holding C3 Ai Inc or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. C3 Ai Inc
Performance |
| Timeline |
| ICICI Bank Limited |
| C3 Ai Inc |
ICICI Bank and C3 Ai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and C3 Ai
The main advantage of trading using opposite ICICI Bank and C3 Ai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, C3 Ai 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 C3 Ai will offset losses from the drop in C3 Ai's long position.| ICICI Bank vs. US Bancorp | ICICI Bank vs. US Bancorp | ICICI Bank vs. KB Financial Group | ICICI Bank vs. Itau Unibanco Banco |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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