Correlation among the returns of various sectors in 2016

·         Correlation between the Banking and the Finance sectors as well as between Power and Utilities Sector were the highest (0.96) followed by correlation between Energy and Oil & Gas sector (0.93), between Auto and Manufacturing Sector (0.9), Infrastructure and PSU Sector (0.9), Infrastructure and Power sector (0.89), Infrastructure and Utilities sector (0.89)

·         Telecom sector is least correlated with many sectors like Health care (0.32), Energy (0.34), Oil & Gas (0.34), FMCG (0.37) and Metal (0.37). Similarly Technology sector is less correlated with Health care sector (0.35) during 2016.

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