Correlation Between MCX ICOMDEX and Kotak Mahindra
Specify exactly 2 symbols:
By analyzing existing cross correlation between MCX ICOMDEX ALUMINIUM and Kotak Mahindra Bank, you can compare the effects of market volatilities on MCX ICOMDEX and Kotak Mahindra 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 MCX ICOMDEX with a short position of Kotak Mahindra. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCX ICOMDEX and Kotak Mahindra.
Diversification Opportunities for MCX ICOMDEX and Kotak Mahindra
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCX and Kotak is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding MCX ICOMDEX ALUMINIUM and Kotak Mahindra Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kotak Mahindra Bank and MCX ICOMDEX 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 MCX ICOMDEX ALUMINIUM are associated (or correlated) with Kotak Mahindra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kotak Mahindra Bank has no effect on the direction of MCX ICOMDEX i.e., MCX ICOMDEX and Kotak Mahindra go up and down completely randomly.
Pair Corralation between MCX ICOMDEX and Kotak Mahindra
Assuming the 90 days trading horizon MCX ICOMDEX ALUMINIUM is expected to under-perform the Kotak Mahindra. But the index apears to be less risky and, when comparing its historical volatility, MCX ICOMDEX ALUMINIUM is 1.17 times less risky than Kotak Mahindra. The index trades about -0.03 of its potential returns per unit of risk. The Kotak Mahindra Bank is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 171,855 in Kotak Mahindra Bank on August 31, 2024 and sell it today you would earn a total of 4,670 from holding Kotak Mahindra Bank or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.1% |
| Values | Daily Returns |
MCX ICOMDEX ALUMINIUM vs. Kotak Mahindra Bank
Performance |
| Timeline |
MCX ICOMDEX and Kotak Mahindra Volatility Contrast
Predicted Return Density |
| Returns |
MCX ICOMDEX ALUMINIUM
Pair trading matchups for MCX ICOMDEX
Kotak Mahindra Bank
Pair trading matchups for Kotak Mahindra
Pair Trading with MCX ICOMDEX and Kotak Mahindra
The main advantage of trading using opposite MCX ICOMDEX and Kotak Mahindra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCX ICOMDEX position performs unexpectedly, Kotak Mahindra 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 Kotak Mahindra will offset losses from the drop in Kotak Mahindra's long position.| MCX ICOMDEX vs. Agro Tech Foods | MCX ICOMDEX vs. ADF Foods Limited | MCX ICOMDEX vs. Vinati Organics Limited | MCX ICOMDEX vs. Praxis Home Retail |
| Kotak Mahindra vs. Life Insurance | Kotak Mahindra vs. Reliance Industrial Infrastructure | Kotak Mahindra vs. Ankit Metal Power | Kotak Mahindra vs. NRB Industrial Bearings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |