Correlation Between Kotak Mahindra and Selan Exploration
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By analyzing existing cross correlation between Kotak Mahindra Bank and Selan Exploration Technology, you can compare the effects of market volatilities on Kotak Mahindra and Selan Exploration 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 Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Selan Exploration.
Diversification Opportunities for Kotak Mahindra and Selan Exploration
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kotak and Selan is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration 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 Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Selan Exploration go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Selan Exploration
Assuming the 90 days trading horizon Kotak Mahindra Bank is expected to generate 0.48 times more return on investment than Selan Exploration. However, Kotak Mahindra Bank is 2.07 times less risky than Selan Exploration. It trades about 0.05 of its potential returns per unit of risk. Selan Exploration Technology is currently generating about -0.08 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 | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. Selan Exploration Technology
Performance |
| Timeline |
| Kotak Mahindra Bank |
| Selan Exploration |
Kotak Mahindra and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Selan Exploration
The main advantage of trading using opposite Kotak Mahindra and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration'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 |
| Selan Exploration vs. Tamilnadu Telecommunication Limited | Selan Exploration vs. Ortel Communications Limited | Selan Exploration vs. Praxis Home Retail | Selan Exploration vs. Cantabil Retail India |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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