Correlation Between Akums Drugs and BF Investment

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Akums Drugs and BF Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Akums Drugs and BF Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akums Drugs and and BF Investment Limited, you can compare the effects of market volatilities on Akums Drugs 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 Akums Drugs with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akums Drugs and BF Investment.

Diversification Opportunities for Akums Drugs and BF Investment

-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between Akums and BFINVEST is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Akums Drugs and 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 Akums Drugs 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 Akums Drugs and 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 Akums Drugs i.e., Akums Drugs and BF Investment go up and down completely randomly.

Pair Corralation between Akums Drugs and BF Investment

Assuming the 90 days trading horizon Akums Drugs and is expected to under-perform the BF Investment. In addition to that, Akums Drugs is 1.11 times more volatile than BF Investment Limited. It trades about -0.05 of its total potential returns per unit of risk. BF Investment Limited is currently generating about 0.05 per unit of volatility. If you would invest  37,645  in BF Investment Limited on October 16, 2024 and sell it today you would earn a total of  17,565  from holding BF Investment Limited or generate 46.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy28.57%
ValuesDaily Returns

Akums Drugs and  vs.  BF Investment Limited

 Performance 
       Timeline  
Akums Drugs 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Akums Drugs and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
BF Investment Limited 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BF Investment Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Akums Drugs and BF Investment Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Akums Drugs and BF Investment

The main advantage of trading using opposite Akums Drugs and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akums Drugs 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.
Akums Drugs vs. FCS Software Solutions
Akums Drugs vs. Shyam Telecom Limited
Akums Drugs vs. Paramount Communications Limited
Akums Drugs vs. Ortel Communications Limited
The idea behind Akums Drugs and and BF Investment Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
BF Investment vs. Krebs Biochemicals and
BF Investment vs. Dharani SugarsChemicals Limited
BF Investment vs. Akums Drugs and
BF Investment vs. Data Patterns 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY