Correlation Between Max Financial and Karur Vysya
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By analyzing existing cross correlation between Max Financial Services and Karur Vysya Bank, you can compare the effects of market volatilities on Max Financial and Karur Vysya 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 Max Financial with a short position of Karur Vysya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Financial and Karur Vysya.
Diversification Opportunities for Max Financial and Karur Vysya
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Max and Karur is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services and Karur Vysya Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karur Vysya Bank and Max Financial 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 Max Financial Services are associated (or correlated) with Karur Vysya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karur Vysya Bank has no effect on the direction of Max Financial i.e., Max Financial and Karur Vysya go up and down completely randomly.
Pair Corralation between Max Financial and Karur Vysya
Assuming the 90 days trading horizon Max Financial Services is expected to under-perform the Karur Vysya. But the stock apears to be less risky and, when comparing its historical volatility, Max Financial Services is 1.25 times less risky than Karur Vysya. The stock trades about -0.24 of its potential returns per unit of risk. The Karur Vysya Bank is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 22,682 in Karur Vysya Bank on August 31, 2024 and sell it today you would earn a total of 1,156 from holding Karur Vysya Bank or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Max Financial Services vs. Karur Vysya Bank
Performance |
| Timeline |
| Max Financial Services |
| Karur Vysya Bank |
Max Financial and Karur Vysya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Financial and Karur Vysya
The main advantage of trading using opposite Max Financial and Karur Vysya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial position performs unexpectedly, Karur Vysya 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 Karur Vysya will offset losses from the drop in Karur Vysya's long position.| Max Financial vs. Aarti Drugs Limited | Max Financial vs. Osia Hyper Retail | Max Financial vs. Hathway Cable Datacom | Max Financial vs. Speciality Restaurants Limited |
| Karur Vysya vs. ICICI Securities Limited | Karur Vysya vs. Nippon Life India | Karur Vysya vs. Fortis Healthcare Limited | Karur Vysya vs. ICICI Lombard General |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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