Correlation Between Max Financial and Bank of Maharashtra
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By analyzing existing cross correlation between Max Financial Services and Bank of Maharashtra, you can compare the effects of market volatilities on Max Financial and Bank of Maharashtra 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 Bank of Maharashtra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Financial and Bank of Maharashtra.
Diversification Opportunities for Max Financial and Bank of Maharashtra
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Max and Bank is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services and Bank of Maharashtra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Maharashtra 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 Bank of Maharashtra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Maharashtra has no effect on the direction of Max Financial i.e., Max Financial and Bank of Maharashtra go up and down completely randomly.
Pair Corralation between Max Financial and Bank of Maharashtra
Assuming the 90 days trading horizon Max Financial Services is expected to under-perform the Bank of Maharashtra. But the stock apears to be less risky and, when comparing its historical volatility, Max Financial Services is 1.08 times less risky than Bank of Maharashtra. The stock trades about -0.17 of its potential returns per unit of risk. The Bank of Maharashtra is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 5,440 in Bank of Maharashtra on September 5, 2024 and sell it today you would earn a total of 452.00 from holding Bank of Maharashtra or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Max Financial Services vs. Bank of Maharashtra
Performance |
| Timeline |
| Max Financial Services |
| Bank of Maharashtra |
Max Financial and Bank of Maharashtra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Max Financial and Bank of Maharashtra
The main advantage of trading using opposite Max Financial and Bank of Maharashtra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial position performs unexpectedly, Bank of Maharashtra 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 Bank of Maharashtra will offset losses from the drop in Bank of Maharashtra's long position.| Max Financial vs. Associated Alcohols Breweries | Max Financial vs. R S Software | Max Financial vs. Dharani SugarsChemicals Limited | Max Financial vs. Le Travenues Technology |
| Bank of Maharashtra vs. Max Financial Services | Bank of Maharashtra vs. Indian Metals Ferro | Bank of Maharashtra vs. Sarthak Metals Limited | Bank of Maharashtra vs. Shyam Metalics and |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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