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Long ICICI (ICICIBC IN) Vs. Short HDFC (HDFCB IN): Spread Trade in High-Profile Indian Bank Pair
929 Views02 Jul 2025 13:10
Potential statistical relative value opportunity based on mean-reversion between ICICI Bank and HDFC Bank, with the price ratio deviating significantly from its average.
What is covered in the Full Insight:
- Introduction to the Trade Setup
- Opportunity Overview
- Trade Setup and Execution
- Key Figures and Factor Exposure
- Risk Factors and Management
Boomeranged on Fri, 18 Jul 2025 11:49
Both banks report on 19 July for the quarter ended 30 June. The pair is trading just below two standard deviations from its one-year historical averageātoo low to enter a new position, too high to exit an existing one. Monitor the pair, as earnings could drive divergence. Consider trimming existing positions for risk management; new opportunities may arise if the ratio dislocates further.
SUMMARY
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Full Insight
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