Correlation Between Kotak Mahindra and Swelect Energy
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By analyzing existing cross correlation between Kotak Mahindra Bank and Swelect Energy Systems, you can compare the effects of market volatilities on Kotak Mahindra and Swelect Energy 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 Swelect Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Swelect Energy.
Diversification Opportunities for Kotak Mahindra and Swelect Energy
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kotak and Swelect is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Bank and Swelect Energy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swelect Energy Systems 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 Swelect Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swelect Energy Systems has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Swelect Energy go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Swelect Energy
Assuming the 90 days trading horizon Kotak Mahindra Bank is expected to generate 0.62 times more return on investment than Swelect Energy. However, Kotak Mahindra Bank is 1.62 times less risky than Swelect Energy. It trades about 0.15 of its potential returns per unit of risk. Swelect Energy Systems is currently generating about -0.16 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 | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kotak Mahindra Bank vs. Swelect Energy Systems
Performance |
| Timeline |
| Kotak Mahindra Bank |
| Swelect Energy Systems |
Kotak Mahindra and Swelect Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Swelect Energy
The main advantage of trading using opposite Kotak Mahindra and Swelect Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Swelect Energy 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 Swelect Energy will offset losses from the drop in Swelect Energy'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 |
| Swelect Energy vs. Cantabil Retail India | Swelect Energy vs. Cartrade Tech Limited | Swelect Energy vs. Sandhar Technologies Limited | Swelect Energy vs. Rossari Biotech 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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