Correlation Between Kotak Mahindra and Central Bank
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By analyzing existing cross correlation between Kotak Mahindra Bank and Central Bank of, you can compare the effects of market volatilities on Kotak Mahindra and Central Bank 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 Central Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Central Bank.
Diversification Opportunities for Kotak Mahindra and Central Bank
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kotak and Central is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and Central Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Bank 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 Central Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Bank has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Central Bank go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Central Bank
Assuming the 90 days trading horizon Kotak Mahindra Bank is expected to generate 0.5 times more return on investment than Central Bank. However, Kotak Mahindra Bank is 1.99 times less risky than Central Bank. It trades about 0.05 of its potential returns per unit of risk. Central Bank of is currently generating about -0.04 per unit of risk. If you would invest 178,390 in Kotak Mahindra Bank on November 2, 2024 and sell it today you would earn a total of 11,760 from holding Kotak Mahindra Bank or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. Central Bank of
Performance |
| Timeline |
| Kotak Mahindra Bank |
| Central Bank |
Kotak Mahindra and Central Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Central Bank
The main advantage of trading using opposite Kotak Mahindra and Central Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Central Bank 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 Central Bank will offset losses from the drop in Central Bank's long position.| Kotak Mahindra vs. Touchwood Entertainment Limited | Kotak Mahindra vs. Radaan Mediaworks India | Kotak Mahindra vs. Ankit Metal Power | Kotak Mahindra vs. NRB Industrial Bearings |
| Central Bank vs. Diligent Media | Central Bank vs. HT Media Limited | Central Bank vs. Bharatiya Global Infomedia | Central Bank vs. Hisar Metal Industries |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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