Correlation Between SBI Mutual and Kotak Mahindra
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By analyzing existing cross correlation between SBI Mutual Fund and Kotak Mahindra Mutual, you can compare the effects of market volatilities on SBI Mutual 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 SBI Mutual with a short position of Kotak Mahindra. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Mutual and Kotak Mahindra.
Diversification Opportunities for SBI Mutual and Kotak Mahindra
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SBI and Kotak is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding SBI Mutual Fund and Kotak Mahindra Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kotak Mahindra Mutual and SBI Mutual 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 SBI Mutual Fund 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 Mutual has no effect on the direction of SBI Mutual i.e., SBI Mutual and Kotak Mahindra go up and down completely randomly.
Pair Corralation between SBI Mutual and Kotak Mahindra
Assuming the 90 days trading horizon SBI Mutual Fund is expected to generate 0.79 times more return on investment than Kotak Mahindra. However, SBI Mutual Fund is 1.26 times less risky than Kotak Mahindra. It trades about 0.09 of its potential returns per unit of risk. Kotak Mahindra Mutual is currently generating about 0.05 per unit of risk. If you would invest 21,894 in SBI Mutual Fund on September 4, 2024 and sell it today you would earn a total of 3,766 from holding SBI Mutual Fund or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
SBI Mutual Fund vs. Kotak Mahindra Mutual
Performance |
| Timeline |
| SBI Mutual Fund |
| Kotak Mahindra Mutual |
SBI Mutual and Kotak Mahindra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Mutual and Kotak Mahindra
The main advantage of trading using opposite SBI Mutual and Kotak Mahindra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Mutual 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.| SBI Mutual vs. Kotak Mahindra Mutual | SBI Mutual vs. HDFC Nifty Smallcap | SBI Mutual vs. Icici Prudential Nifty |
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.
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