Correlation Between Kotak Mahindra and NMDC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kotak Mahindra Bank and NMDC Limited, you can compare the effects of market volatilities on Kotak Mahindra and NMDC 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 NMDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and NMDC.
Diversification Opportunities for Kotak Mahindra and NMDC
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kotak and NMDC is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and NMDC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMDC Limited 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 NMDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NMDC Limited has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and NMDC go up and down completely randomly.
Pair Corralation between Kotak Mahindra and NMDC
Assuming the 90 days trading horizon Kotak Mahindra Bank is expected to generate 0.91 times more return on investment than NMDC. However, Kotak Mahindra Bank is 1.1 times less risky than NMDC. It trades about 0.15 of its potential returns per unit of risk. NMDC Limited is currently generating about 0.05 per unit of risk. If you would invest 177,790 in Kotak Mahindra Bank on November 6, 2024 and sell it today you would earn a total of 12,210 from holding Kotak Mahindra Bank or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. NMDC Limited
Performance |
| Timeline |
| Kotak Mahindra Bank |
| NMDC Limited |
Kotak Mahindra and NMDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and NMDC
The main advantage of trading using opposite Kotak Mahindra and NMDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, NMDC 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 NMDC will offset losses from the drop in NMDC's long position.| Kotak Mahindra vs. Nazara Technologies Limited | Kotak Mahindra vs. Sasken Technologies Limited | Kotak Mahindra vs. Rossari Biotech Limited | Kotak Mahindra vs. Cambridge Technology Enterprises |
| NMDC vs. AXISCADES Technologies Limited | NMDC vs. Newgen Software Technologies | NMDC vs. SAL Steel Limited | NMDC vs. JSW Steel 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |