Correlation Between 360 ONE and BF Investment
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By analyzing existing cross correlation between 360 ONE WAM and BF Investment Limited, you can compare the effects of market volatilities on 360 ONE and BF Investment 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 360 ONE with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 ONE and BF Investment.
Diversification Opportunities for 360 ONE and BF Investment
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 360 and BFINVEST is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding 360 ONE WAM and BF Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Investment Limited and 360 ONE 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 360 ONE WAM are associated (or correlated) with BF Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Investment Limited has no effect on the direction of 360 ONE i.e., 360 ONE and BF Investment go up and down completely randomly.
Pair Corralation between 360 ONE and BF Investment
Assuming the 90 days trading horizon 360 ONE WAM is expected to generate 1.39 times more return on investment than BF Investment. However, 360 ONE is 1.39 times more volatile than BF Investment Limited. It trades about 0.3 of its potential returns per unit of risk. BF Investment Limited is currently generating about -0.07 per unit of risk. If you would invest 105,115 in 360 ONE WAM on September 12, 2024 and sell it today you would earn a total of 14,725 from holding 360 ONE WAM or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
360 ONE WAM vs. BF Investment Limited
Performance |
| Timeline |
| 360 ONE WAM |
| BF Investment Limited |
360 ONE and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 ONE and BF Investment
The main advantage of trading using opposite 360 ONE and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 ONE position performs unexpectedly, BF Investment 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 BF Investment will offset losses from the drop in BF Investment's long position.| 360 ONE vs. Pilani Investment and | 360 ONE vs. Tata Chemicals Limited | 360 ONE vs. Tata Communications Limited | 360 ONE vs. HDFC Asset Management |
| BF Investment vs. Yes Bank Limited | BF Investment vs. Indian Oil | BF Investment vs. Indo Borax Chemicals | BF Investment 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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