Correlation Between Kotak Mahindra and Life Insurance
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By analyzing existing cross correlation between Kotak Mahindra Bank and Life Insurance, you can compare the effects of market volatilities on Kotak Mahindra and Life Insurance 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 Life Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Life Insurance.
Diversification Opportunities for Kotak Mahindra and Life Insurance
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kotak and Life is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Insurance 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 Life Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Insurance has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Life Insurance go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Life Insurance
Assuming the 90 days trading horizon Kotak Mahindra Bank is expected to generate 0.69 times more return on investment than Life Insurance. However, Kotak Mahindra Bank is 1.45 times less risky than Life Insurance. It trades about 0.04 of its potential returns per unit of risk. Life Insurance is currently generating about -0.03 per unit of risk. If you would invest 171,251 in Kotak Mahindra Bank on November 8, 2024 and sell it today you would earn a total of 20,344 from holding Kotak Mahindra Bank or generate 11.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. Life Insurance
Performance |
| Timeline |
| Kotak Mahindra Bank |
| Life Insurance |
Kotak Mahindra and Life Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Life Insurance
The main advantage of trading using opposite Kotak Mahindra and Life Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Life Insurance 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 Life Insurance will offset losses from the drop in Life Insurance's long position.| Kotak Mahindra vs. Tera Software Limited | Kotak Mahindra vs. Compucom Software Limited | Kotak Mahindra vs. Nucleus Software Exports | Kotak Mahindra vs. Vidhi Specialty Food |
| Life Insurance vs. Apex Frozen Foods | Life Insurance vs. Global Health Limited | Life Insurance vs. GPT Healthcare | Life Insurance vs. Blue Jet Healthcare |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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