Correlation Between Akme Fintrade and BF Utilities
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By analyzing existing cross correlation between Akme Fintrade India and BF Utilities Limited, you can compare the effects of market volatilities on Akme Fintrade and BF Utilities 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 Akme Fintrade with a short position of BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akme Fintrade and BF Utilities.
Diversification Opportunities for Akme Fintrade and BF Utilities
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Akme and BFUTILITIE is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Akme Fintrade India and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities Limited and Akme Fintrade 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 Akme Fintrade India are associated (or correlated) with BF Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of Akme Fintrade i.e., Akme Fintrade and BF Utilities go up and down completely randomly.
Pair Corralation between Akme Fintrade and BF Utilities
Assuming the 90 days trading horizon Akme Fintrade India is expected to under-perform the BF Utilities. But the stock apears to be less risky and, when comparing its historical volatility, Akme Fintrade India is 1.46 times less risky than BF Utilities. The stock trades about -0.61 of its potential returns per unit of risk. The BF Utilities Limited is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 92,850 in BF Utilities Limited on October 13, 2024 and sell it today you would lose (4,860) from holding BF Utilities Limited or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akme Fintrade India vs. BF Utilities Limited
Performance |
| Timeline |
| Akme Fintrade India |
| BF Utilities Limited |
Akme Fintrade and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akme Fintrade and BF Utilities
The main advantage of trading using opposite Akme Fintrade and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akme Fintrade position performs unexpectedly, BF Utilities 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 Utilities will offset losses from the drop in BF Utilities' long position.| Akme Fintrade vs. Bajaj Finance Limited | Akme Fintrade vs. Indian Railway Finance | Akme Fintrade vs. Power Finance | Akme Fintrade vs. REC Limited |
| BF Utilities vs. Agro Tech Foods | BF Utilities vs. Dodla Dairy Limited | BF Utilities vs. Sarveshwar Foods Limited | BF Utilities vs. LT Foods 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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