Correlation Between Kotak Mahindra and S P
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By analyzing existing cross correlation between Kotak Mahindra Bank and S P Apparels, you can compare the effects of market volatilities on Kotak Mahindra and S P 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 S P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and S P.
Diversification Opportunities for Kotak Mahindra and S P
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kotak and SPAL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and S P Apparels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S P Apparels 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 S P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S P Apparels has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and S P go up and down completely randomly.
Pair Corralation between Kotak Mahindra and S P
Assuming the 90 days trading horizon Kotak Mahindra is expected to generate 9.58 times less return on investment than S P. But when comparing it to its historical volatility, Kotak Mahindra Bank is 2.2 times less risky than S P. It trades about 0.02 of its potential returns per unit of risk. S P Apparels is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 29,393 in S P Apparels on November 1, 2024 and sell it today you would earn a total of 51,622 from holding S P Apparels or generate 175.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. S P Apparels
Performance |
| Timeline |
| Kotak Mahindra Bank |
| S P Apparels |
Kotak Mahindra and S P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and S P
The main advantage of trading using opposite Kotak Mahindra and S P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, S P 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 S P will offset losses from the drop in S P's long position.| Kotak Mahindra vs. LT Foods Limited | Kotak Mahindra vs. Teamlease Services Limited | Kotak Mahindra vs. Foods Inns Limited | Kotak Mahindra vs. Megastar Foods Limited |
| S P vs. Kingfa Science Technology | S P vs. Rico Auto Industries | S P vs. COSMO FIRST LIMITED | S P vs. Tribhovandas Bhimji Zaveri |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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