Correlation Between Embassy Office and Kotak Mahindra
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By analyzing existing cross correlation between Embassy Office Parks and Kotak Mahindra Bank, you can compare the effects of market volatilities on Embassy Office 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 Embassy Office with a short position of Kotak Mahindra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embassy Office and Kotak Mahindra.
Diversification Opportunities for Embassy Office and Kotak Mahindra
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embassy and Kotak is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Embassy Office Parks 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 Embassy Office 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 Embassy Office Parks 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 Embassy Office i.e., Embassy Office and Kotak Mahindra go up and down completely randomly.
Pair Corralation between Embassy Office and Kotak Mahindra
Assuming the 90 days trading horizon Embassy Office Parks is expected to under-perform the Kotak Mahindra. But the stock apears to be less risky and, when comparing its historical volatility, Embassy Office Parks is 1.28 times less risky than Kotak Mahindra. The stock trades about -0.03 of its potential returns per unit of risk. The Kotak Mahindra Bank is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 179,200 in Kotak Mahindra Bank on October 26, 2024 and sell it today you would earn a total of 10,285 from holding Kotak Mahindra Bank or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embassy Office Parks vs. Kotak Mahindra Bank
Performance |
| Timeline |
| Embassy Office Parks |
| Kotak Mahindra Bank |
Embassy Office and Kotak Mahindra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embassy Office and Kotak Mahindra
The main advantage of trading using opposite Embassy Office and Kotak Mahindra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embassy Office 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.| Embassy Office vs. Reliance Industries Limited | Embassy Office vs. Life Insurance | Embassy Office vs. Indian Oil | Embassy Office vs. Oil Natural Gas |
| Kotak Mahindra vs. Hybrid Financial Services | Kotak Mahindra vs. Unitech Limited | Kotak Mahindra vs. Goldstone Technologies Limited | Kotak Mahindra vs. 63 moons technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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