Correlation Between Kotak Mahindra and Computer Age
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By analyzing existing cross correlation between Kotak Mahindra Bank and Computer Age Management, you can compare the effects of market volatilities on Kotak Mahindra and Computer Age 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 Kotak Mahindra with a short position of Computer Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Computer Age.
Diversification Opportunities for Kotak Mahindra and Computer Age
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kotak and Computer is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and Computer Age Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Age Management and Kotak Mahindra 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 Kotak Mahindra Bank are associated (or correlated) with Computer Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Age Management has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Computer Age go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Computer Age
Assuming the 90 days trading horizon Kotak Mahindra is expected to generate 3.4 times less return on investment than Computer Age. But when comparing it to its historical volatility, Kotak Mahindra Bank is 1.72 times less risky than Computer Age. It trades about 0.03 of its potential returns per unit of risk. Computer Age Management is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 218,267 in Computer Age Management on November 19, 2024 and sell it today you would earn a total of 119,268 from holding Computer Age Management or generate 54.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. Computer Age Management
Performance |
| Timeline |
| Kotak Mahindra Bank |
| Computer Age Management |
Kotak Mahindra and Computer Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Computer Age
The main advantage of trading using opposite Kotak Mahindra and Computer Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Computer Age 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 Computer Age will offset losses from the drop in Computer Age's long position.| Kotak Mahindra vs. Total Transport Systems | Kotak Mahindra vs. Newgen Software Technologies | Kotak Mahindra vs. Advani Hotels Resorts | Kotak Mahindra vs. Bharat Road Network |
| Computer Age vs. Kingfa Science Technology | Computer Age vs. Cybertech Systems And | Computer Age vs. VA Tech Wabag | Computer Age vs. Unitech 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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