Correlation Between General Insurance and Kotak Mahindra
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By analyzing existing cross correlation between General Insurance and Kotak Mahindra Bank, you can compare the effects of market volatilities on General Insurance 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 General Insurance with a short position of Kotak Mahindra. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insurance and Kotak Mahindra.
Diversification Opportunities for General Insurance and Kotak Mahindra
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between General and Kotak is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance 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 General Insurance 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 General Insurance 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 General Insurance i.e., General Insurance and Kotak Mahindra go up and down completely randomly.
Pair Corralation between General Insurance and Kotak Mahindra
Assuming the 90 days trading horizon General Insurance is expected to generate 2.33 times more return on investment than Kotak Mahindra. However, General Insurance is 2.33 times more volatile than Kotak Mahindra Bank. It trades about 0.08 of its potential returns per unit of risk. Kotak Mahindra Bank is currently generating about 0.02 per unit of risk. If you would invest 14,958 in General Insurance on November 1, 2024 and sell it today you would earn a total of 25,537 from holding General Insurance or generate 170.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
General Insurance vs. Kotak Mahindra Bank
Performance |
| Timeline |
| General Insurance |
| Kotak Mahindra Bank |
General Insurance and Kotak Mahindra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insurance and Kotak Mahindra
The main advantage of trading using opposite General Insurance and Kotak Mahindra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insurance 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.| General Insurance vs. Kewal Kiran Clothing | General Insurance vs. NRB Industrial Bearings | General Insurance vs. Ratnamani Metals Tubes | General Insurance vs. AUTHUM INVESTMENT INFRASTRUCTU |
| Kotak Mahindra vs. LT Foods Limited | Kotak Mahindra vs. Teamlease Services Limited | Kotak Mahindra vs. Foods Inns Limited | Kotak Mahindra vs. Megastar Foods Limited |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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