Correlation Between Aster DM and BF Investment
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By analyzing existing cross correlation between Aster DM Healthcare and BF Investment Limited, you can compare the effects of market volatilities on Aster DM 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 Aster DM with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aster DM and BF Investment.
Diversification Opportunities for Aster DM and BF Investment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aster and BFINVEST is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aster DM Healthcare 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 Aster DM 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 Aster DM Healthcare 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 Aster DM i.e., Aster DM and BF Investment go up and down completely randomly.
Pair Corralation between Aster DM and BF Investment
Assuming the 90 days trading horizon Aster DM is expected to generate 1.05 times less return on investment than BF Investment. But when comparing it to its historical volatility, Aster DM Healthcare is 1.32 times less risky than BF Investment. It trades about 0.25 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 65,405 in BF Investment Limited on August 30, 2024 and sell it today you would earn a total of 7,475 from holding BF Investment Limited or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aster DM Healthcare vs. BF Investment Limited
Performance |
| Timeline |
| Aster DM Healthcare |
| BF Investment Limited |
Aster DM and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aster DM and BF Investment
The main advantage of trading using opposite Aster DM and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aster DM 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.| Aster DM vs. PB Fintech Limited | Aster DM vs. Yatharth Hospital Trauma | Aster DM vs. Lotus Eye Hospital | Aster DM vs. Entero Healthcare Solutions |
| BF Investment vs. Indian Railway Finance | BF Investment vs. Cholamandalam Financial Holdings | BF Investment vs. Reliance Industries Limited | BF Investment vs. Tata Consultancy Services |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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