Correlation Between Kotak Mahindra and Baazar Style
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By analyzing existing cross correlation between Kotak Mahindra Bank and Baazar Style Retail, you can compare the effects of market volatilities on Kotak Mahindra and Baazar Style 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 Baazar Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Baazar Style.
Diversification Opportunities for Kotak Mahindra and Baazar Style
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kotak and Baazar is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and Baazar Style Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baazar Style Retail 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 Baazar Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baazar Style Retail has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Baazar Style go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Baazar Style
Assuming the 90 days trading horizon Kotak Mahindra Bank is expected to generate 0.4 times more return on investment than Baazar Style. However, Kotak Mahindra Bank is 2.52 times less risky than Baazar Style. It trades about 0.02 of its potential returns per unit of risk. Baazar Style Retail is currently generating about -0.1 per unit of risk. If you would invest 176,505 in Kotak Mahindra Bank on November 5, 2024 and sell it today you would earn a total of 13,495 from holding Kotak Mahindra Bank or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.11% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. Baazar Style Retail
Performance |
| Timeline |
| Kotak Mahindra Bank |
| Baazar Style Retail |
Kotak Mahindra and Baazar Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Baazar Style
The main advantage of trading using opposite Kotak Mahindra and Baazar Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Baazar Style 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 Baazar Style will offset losses from the drop in Baazar Style's long position.| Kotak Mahindra vs. Welspun Investments and | Kotak Mahindra vs. Bajaj Holdings Investment | Kotak Mahindra vs. BF Investment Limited | Kotak Mahindra vs. V Mart Retail Limited |
| Baazar Style vs. Trent Limited | Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. Visa 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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