Correlation Between Kotak Mahindra and Max Financial
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By analyzing existing cross correlation between Kotak Mahindra Bank and Max Financial Services, you can compare the effects of market volatilities on Kotak Mahindra and Max Financial 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 Max Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Max Financial.
Diversification Opportunities for Kotak Mahindra and Max Financial
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kotak and Max is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and Max Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Max Financial Services 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 Max Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Max Financial Services has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Max Financial go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Max Financial
Assuming the 90 days trading horizon Kotak Mahindra Bank is expected to generate 0.61 times more return on investment than Max Financial. However, Kotak Mahindra Bank is 1.63 times less risky than Max Financial. It trades about 0.09 of its potential returns per unit of risk. Max Financial Services is currently generating about -0.2 per unit of risk. If you would invest 175,300 in Kotak Mahindra Bank on August 29, 2024 and sell it today you would earn a total of 3,060 from holding Kotak Mahindra Bank or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. Max Financial Services
Performance |
| Timeline |
| Kotak Mahindra Bank |
| Max Financial Services |
Kotak Mahindra and Max Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Max Financial
The main advantage of trading using opposite Kotak Mahindra and Max Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Max Financial 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 Max Financial will offset losses from the drop in Max Financial's long position.| Kotak Mahindra vs. MRF Limited | Kotak Mahindra vs. Nalwa Sons Investments | Kotak Mahindra vs. Kalyani Investment | Kotak Mahindra vs. Vardhman Holdings Limited |
| Max Financial vs. MRF Limited | Max Financial vs. Nalwa Sons Investments | Max Financial vs. Kalyani Investment | Max Financial vs. Vardhman Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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