Correlation Between Goldstone Technologies and Kotak Mahindra
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By analyzing existing cross correlation between Goldstone Technologies Limited and Kotak Mahindra Bank, you can compare the effects of market volatilities on Goldstone Technologies 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 Goldstone Technologies with a short position of Kotak Mahindra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldstone Technologies and Kotak Mahindra.
Diversification Opportunities for Goldstone Technologies and Kotak Mahindra
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goldstone and Kotak is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Goldstone Technologies Limited 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 Goldstone Technologies 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 Goldstone Technologies Limited 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 Goldstone Technologies i.e., Goldstone Technologies and Kotak Mahindra go up and down completely randomly.
Pair Corralation between Goldstone Technologies and Kotak Mahindra
Assuming the 90 days trading horizon Goldstone Technologies Limited is expected to under-perform the Kotak Mahindra. In addition to that, Goldstone Technologies is 2.16 times more volatile than Kotak Mahindra Bank. It trades about -0.16 of its total potential returns per unit of risk. Kotak Mahindra Bank is currently generating about 0.04 per unit of volatility. If you would invest 179,455 in Kotak Mahindra Bank on October 26, 2024 and sell it today you would earn a total of 10,030 from holding Kotak Mahindra Bank or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Goldstone Technologies Limited vs. Kotak Mahindra Bank
Performance |
| Timeline |
| Goldstone Technologies |
| Kotak Mahindra Bank |
Goldstone Technologies and Kotak Mahindra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldstone Technologies and Kotak Mahindra
The main advantage of trading using opposite Goldstone Technologies and Kotak Mahindra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldstone Technologies 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.The idea behind Goldstone Technologies Limited and Kotak Mahindra Bank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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