Correlation Between Indo Amines and Kotak Nifty
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By analyzing existing cross correlation between Indo Amines Limited and Kotak Nifty Midcap, you can compare the effects of market volatilities on Indo Amines 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 Indo Amines with a short position of Kotak Nifty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Amines and Kotak Nifty.
Diversification Opportunities for Indo Amines and Kotak Nifty
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indo and Kotak is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Indo Amines 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 Indo Amines 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 Indo Amines 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 Indo Amines i.e., Indo Amines and Kotak Nifty go up and down completely randomly.
Pair Corralation between Indo Amines and Kotak Nifty
Assuming the 90 days trading horizon Indo Amines Limited is expected to under-perform the Kotak Nifty. In addition to that, Indo Amines is 1.5 times more volatile than Kotak Nifty Midcap. It trades about -0.03 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Amines Limited vs. Kotak Nifty Midcap
Performance |
| Timeline |
| Indo Amines Limited |
| Kotak Nifty Midcap |
Indo Amines and Kotak Nifty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Amines and Kotak Nifty
The main advantage of trading using opposite Indo Amines and Kotak Nifty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Amines 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.| Indo Amines vs. Alkali Metals Limited | Indo Amines vs. Reliance Industrial Infrastructure | Indo Amines vs. Manaksia Coated Metals | Indo Amines vs. Metalyst Forgings Limited |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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