Correlation Between Kotak Mahindra and Sukhjit Starch
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By analyzing existing cross correlation between Kotak Mahindra Bank and Sukhjit Starch Chemicals, you can compare the effects of market volatilities on Kotak Mahindra and Sukhjit Starch 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 Sukhjit Starch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Sukhjit Starch.
Diversification Opportunities for Kotak Mahindra and Sukhjit Starch
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kotak and Sukhjit is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and Sukhjit Starch Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sukhjit Starch Chemicals 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 Sukhjit Starch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sukhjit Starch Chemicals has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Sukhjit Starch go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Sukhjit Starch
Assuming the 90 days trading horizon Kotak Mahindra is expected to generate 4.88 times less return on investment than Sukhjit Starch. But when comparing it to its historical volatility, Kotak Mahindra Bank is 2.77 times less risky than Sukhjit Starch. It trades about 0.09 of its potential returns per unit of risk. Sukhjit Starch Chemicals is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 24,915 in Sukhjit Starch Chemicals on September 1, 2024 and sell it today you would earn a total of 1,953 from holding Sukhjit Starch Chemicals or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. Sukhjit Starch Chemicals
Performance |
| Timeline |
| Kotak Mahindra Bank |
| Sukhjit Starch Chemicals |
Kotak Mahindra and Sukhjit Starch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Sukhjit Starch
The main advantage of trading using opposite Kotak Mahindra and Sukhjit Starch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Sukhjit Starch 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 Sukhjit Starch will offset losses from the drop in Sukhjit Starch's long position.| Kotak Mahindra vs. Kaynes Technology India | Kotak Mahindra vs. Nucleus Software Exports | Kotak Mahindra vs. FCS Software Solutions | Kotak Mahindra vs. Sarveshwar Foods Limited |
| Sukhjit Starch vs. Sumitomo Chemical India | Sukhjit Starch vs. DMCC SPECIALITY CHEMICALS | Sukhjit Starch vs. California Software | Sukhjit Starch vs. Selan Exploration Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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