Correlation Between Kohinoor Foods and Bank of Maharashtra
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By analyzing existing cross correlation between Kohinoor Foods Limited and Bank of Maharashtra, you can compare the effects of market volatilities on Kohinoor Foods and Bank of Maharashtra 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 Kohinoor Foods with a short position of Bank of Maharashtra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and Bank of Maharashtra.
Diversification Opportunities for Kohinoor Foods and Bank of Maharashtra
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kohinoor and Bank is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods Limited and Bank of Maharashtra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Maharashtra and Kohinoor Foods 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 Kohinoor Foods Limited are associated (or correlated) with Bank of Maharashtra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Maharashtra has no effect on the direction of Kohinoor Foods i.e., Kohinoor Foods and Bank of Maharashtra go up and down completely randomly.
Pair Corralation between Kohinoor Foods and Bank of Maharashtra
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to under-perform the Bank of Maharashtra. But the stock apears to be less risky and, when comparing its historical volatility, Kohinoor Foods Limited is 1.52 times less risky than Bank of Maharashtra. The stock trades about -0.13 of its potential returns per unit of risk. The Bank of Maharashtra is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,260 in Bank of Maharashtra on November 5, 2024 and sell it today you would lose (131.00) from holding Bank of Maharashtra or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. Bank of Maharashtra
Performance |
| Timeline |
| Kohinoor Foods |
| Bank of Maharashtra |
Kohinoor Foods and Bank of Maharashtra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and Bank of Maharashtra
The main advantage of trading using opposite Kohinoor Foods and Bank of Maharashtra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods position performs unexpectedly, Bank of Maharashtra 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 Bank of Maharashtra will offset losses from the drop in Bank of Maharashtra's long position.| Kohinoor Foods vs. Reliance Industries Limited | Kohinoor Foods vs. Tata Motors Limited | Kohinoor Foods vs. Oil Natural Gas | Kohinoor Foods vs. HCL Technologies Limited |
| Bank of Maharashtra vs. Agarwal Industrial | Bank of Maharashtra vs. Reliance Industrial Infrastructure | Bank of Maharashtra vs. FCS Software Solutions | Bank of Maharashtra vs. Sintex Plastics Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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