Correlation Between V2 Retail and Kotak Mahindra
Specify exactly 2 symbols:
By analyzing existing cross correlation between V2 Retail Limited and Kotak Mahindra Bank, you can compare the effects of market volatilities on V2 Retail 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 V2 Retail with a short position of Kotak Mahindra. Check out your portfolio center. Please also check ongoing floating volatility patterns of V2 Retail and Kotak Mahindra.
Diversification Opportunities for V2 Retail and Kotak Mahindra
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between V2RETAIL and Kotak is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding V2 Retail Limited 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 V2 Retail 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 V2 Retail Limited 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 V2 Retail i.e., V2 Retail and Kotak Mahindra go up and down completely randomly.
Pair Corralation between V2 Retail and Kotak Mahindra
Assuming the 90 days trading horizon V2 Retail Limited is expected to generate 2.23 times more return on investment than Kotak Mahindra. However, V2 Retail is 2.23 times more volatile than Kotak Mahindra Bank. It trades about 0.23 of its potential returns per unit of risk. Kotak Mahindra Bank is currently generating about 0.02 per unit of risk. If you would invest 8,415 in V2 Retail Limited on November 5, 2024 and sell it today you would earn a total of 177,390 from holding V2 Retail Limited or generate 2108.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
V2 Retail Limited vs. Kotak Mahindra Bank
Performance |
| Timeline |
| V2 Retail Limited |
| Kotak Mahindra Bank |
V2 Retail and Kotak Mahindra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V2 Retail and Kotak Mahindra
The main advantage of trading using opposite V2 Retail and Kotak Mahindra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V2 Retail 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.| V2 Retail vs. State Bank of | V2 Retail vs. Reliance Industries Limited | V2 Retail vs. HDFC Bank Limited | V2 Retail vs. Tata Motors Limited |
| Kotak Mahindra vs. Welspun Investments and | Kotak Mahindra vs. Bajaj Holdings Investment | Kotak Mahindra vs. BF Investment Limited | Kotak Mahindra vs. V Mart Retail 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |