Correlation Between DCM Financial and Kotak Mahindra
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By analyzing existing cross correlation between DCM Financial Services and Kotak Mahindra Bank, you can compare the effects of market volatilities on DCM Financial and Kotak Mahindra 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 DCM Financial with a short position of Kotak Mahindra. Check out your portfolio center. Please also check ongoing floating volatility patterns of DCM Financial and Kotak Mahindra.
Diversification Opportunities for DCM Financial and Kotak Mahindra
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DCM and Kotak is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding DCM Financial Services and Kotak Mahindra Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kotak Mahindra Bank and DCM Financial 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 DCM Financial Services are associated (or correlated) with Kotak Mahindra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kotak Mahindra Bank has no effect on the direction of DCM Financial i.e., DCM Financial and Kotak Mahindra go up and down completely randomly.
Pair Corralation between DCM Financial and Kotak Mahindra
Assuming the 90 days trading horizon DCM Financial Services is expected to under-perform the Kotak Mahindra. But the stock apears to be less risky and, when comparing its historical volatility, DCM Financial Services is 1.08 times less risky than Kotak Mahindra. The stock trades about -0.26 of its potential returns per unit of risk. The Kotak Mahindra Bank is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 176,505 in Kotak Mahindra Bank on November 9, 2024 and sell it today you would earn a total of 15,090 from holding Kotak Mahindra Bank or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DCM Financial Services vs. Kotak Mahindra Bank
Performance |
| Timeline |
| DCM Financial Services |
| Kotak Mahindra Bank |
DCM Financial and Kotak Mahindra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DCM Financial and Kotak Mahindra
The main advantage of trading using opposite DCM Financial and Kotak Mahindra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DCM Financial position performs unexpectedly, Kotak Mahindra 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 Kotak Mahindra will offset losses from the drop in Kotak Mahindra's long position.| DCM Financial vs. Music Broadcast Limited | DCM Financial vs. Salzer Electronics Limited | DCM Financial vs. Elin Electronics Limited | DCM Financial vs. Total Transport Systems |
| Kotak Mahindra vs. Mahamaya Steel Industries | Kotak Mahindra vs. Credo Brands Marketing | Kotak Mahindra vs. Vardhman Special Steels | Kotak Mahindra vs. Zenith Steel Pipes |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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