Correlation Between GTL and Kotak Nifty
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By analyzing existing cross correlation between GTL Limited and Kotak Nifty Midcap, you can compare the effects of market volatilities on GTL and Kotak Nifty 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 GTL with a short position of Kotak Nifty. Check out your portfolio center. Please also check ongoing floating volatility patterns of GTL and Kotak Nifty.
Diversification Opportunities for GTL and Kotak Nifty
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GTL and Kotak is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding GTL Limited and Kotak Nifty Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kotak Nifty Midcap and GTL 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 GTL Limited are associated (or correlated) with Kotak Nifty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kotak Nifty Midcap has no effect on the direction of GTL i.e., GTL and Kotak Nifty go up and down completely randomly.
Pair Corralation between GTL and Kotak Nifty
Assuming the 90 days trading horizon GTL is expected to generate 5.41 times less return on investment than Kotak Nifty. In addition to that, GTL is 1.89 times more volatile than Kotak Nifty Midcap. It trades about 0.01 of its total potential returns per unit of risk. Kotak Nifty Midcap is currently generating about 0.13 per unit of volatility. If you would invest 13,262 in Kotak Nifty Midcap on September 12, 2024 and sell it today you would earn a total of 2,693 from holding Kotak Nifty Midcap or generate 20.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GTL Limited vs. Kotak Nifty Midcap
Performance |
| Timeline |
| GTL Limited |
| Kotak Nifty Midcap |
GTL and Kotak Nifty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GTL and Kotak Nifty
The main advantage of trading using opposite GTL and Kotak Nifty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GTL position performs unexpectedly, Kotak Nifty 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 Nifty will offset losses from the drop in Kotak Nifty's long position.| GTL vs. Pritish Nandy Communications | GTL vs. One 97 Communications | GTL vs. AVALON TECHNOLOGIES LTD | GTL vs. FCS Software Solutions |
| Kotak Nifty vs. Kingfa Science Technology | Kotak Nifty vs. GTL Limited | Kotak Nifty vs. Agro Phos India | Kotak Nifty vs. Indo Amines 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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