Correlation Between Motilal Oswal and Federal Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Motilal Oswal Financial and The Federal Bank, you can compare the effects of market volatilities on Motilal Oswal and Federal Bank 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 Motilal Oswal with a short position of Federal Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motilal Oswal and Federal Bank.
Diversification Opportunities for Motilal Oswal and Federal Bank
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Motilal and Federal is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Motilal Oswal Financial and The Federal Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Bank and Motilal Oswal 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 Motilal Oswal Financial are associated (or correlated) with Federal Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Bank has no effect on the direction of Motilal Oswal i.e., Motilal Oswal and Federal Bank go up and down completely randomly.
Pair Corralation between Motilal Oswal and Federal Bank
Assuming the 90 days trading horizon Motilal Oswal Financial is expected to generate 1.84 times more return on investment than Federal Bank. However, Motilal Oswal is 1.84 times more volatile than The Federal Bank. It trades about 0.18 of its potential returns per unit of risk. The Federal Bank is currently generating about 0.11 per unit of risk. If you would invest 70,365 in Motilal Oswal Financial on October 5, 2024 and sell it today you would earn a total of 28,155 from holding Motilal Oswal Financial or generate 40.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Motilal Oswal Financial vs. The Federal Bank
Performance |
Timeline |
Motilal Oswal Financial |
Federal Bank |
Motilal Oswal and Federal Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Motilal Oswal and Federal Bank
The main advantage of trading using opposite Motilal Oswal and Federal Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motilal Oswal position performs unexpectedly, Federal Bank 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 Federal Bank will offset losses from the drop in Federal Bank's long position.Motilal Oswal vs. KIOCL Limited | Motilal Oswal vs. Spentex Industries Limited | Motilal Oswal vs. Indo Borax Chemicals | Motilal Oswal vs. Kingfa Science Technology |
Federal Bank vs. KIOCL Limited | Federal Bank vs. Spentex Industries Limited | Federal Bank vs. Indo Borax Chemicals | Federal Bank vs. Kingfa Science Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |