Exploits relationships between correlated markets and instruments
| Strategy Type | Intermarket Analysis / Correlation Trading |
| Market Outlook | Exploits relationships between correlated markets and instruments |
| Risk Profile | Moderate - diversified exposure reduces single-instrument risk |
| Reward Profile | Consistent returns from correlation convergence and divergence trades |
| Time Horizon | Intraday to swing (1-7 days) depending on correlation signal |
| Capital Requirement | Higher (₹4,00,000 - ₹8,00,000 for multi-instrument positions) |
| Margin Type | NRML preferred for correlation trades; MIS for intraday spreads |
| Best Used When | Correlation divergence detected, spread trading opportunities, cross-market signals present |
| NIFTY | 25 units per lot (₹50 per point) |
| BANKNIFTY | 15 units per lot (₹15 per point) |
| FINNIFTY | 25 units per lot (₹25 per point) |
| Stock Futures | Varies by stock |
| Nifty Banknifty | 0.85-0.95 typical correlation |
| Nifty Finnifty | 0.80-0.90 typical correlation |
| Banknifty Finnifty | 0.90-0.95 typical correlation |
| Nifty Sgx | 0.95+ correlation with SGX NIFTY |
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