Correlation Between Kotak Mahindra and Icici Prudential
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By analyzing existing cross correlation between Kotak Mahindra Mutual and Icici Prudential Nifty, you can compare the effects of market volatilities on Kotak Mahindra and Icici Prudential 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 Icici Prudential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kotak Mahindra and Icici Prudential.
Diversification Opportunities for Kotak Mahindra and Icici Prudential
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kotak and Icici is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kotak Mahindra Mutual and Icici Prudential Nifty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icici Prudential Nifty 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 Mutual are associated (or correlated) with Icici Prudential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icici Prudential Nifty has no effect on the direction of Kotak Mahindra i.e., Kotak Mahindra and Icici Prudential go up and down completely randomly.
Pair Corralation between Kotak Mahindra and Icici Prudential
Assuming the 90 days trading horizon Kotak Mahindra Mutual is expected to generate 1.08 times more return on investment than Icici Prudential. However, Kotak Mahindra is 1.08 times more volatile than Icici Prudential Nifty. It trades about 0.06 of its potential returns per unit of risk. Icici Prudential Nifty is currently generating about -0.24 per unit of risk. If you would invest 53,064 in Kotak Mahindra Mutual on September 12, 2024 and sell it today you would earn a total of 1,889 from holding Kotak Mahindra Mutual or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Kotak Mahindra Mutual vs. Icici Prudential Nifty
Performance |
| Timeline |
| Kotak Mahindra Mutual |
| Icici Prudential Nifty |
Kotak Mahindra and Icici Prudential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kotak Mahindra and Icici Prudential
The main advantage of trading using opposite Kotak Mahindra and Icici Prudential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kotak Mahindra position performs unexpectedly, Icici Prudential 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 Icici Prudential will offset losses from the drop in Icici Prudential's long position.| Kotak Mahindra vs. SBI Mutual Fund | Kotak Mahindra vs. HDFC Nifty Smallcap | Kotak Mahindra vs. Kingfa Science Technology | Kotak Mahindra vs. GTL Limited |
| Icici Prudential vs. SBI Mutual Fund | Icici Prudential vs. HDFC Nifty Smallcap | Icici Prudential vs. Kingfa Science Technology | Icici Prudential vs. GTL 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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