Correlation Between Bajaj Holdings and Bikaji Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Bajaj Holdings Investment and Bikaji Foods International, you can compare the effects of market volatilities on Bajaj Holdings and Bikaji Foods 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 Bajaj Holdings with a short position of Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Bikaji Foods.
Diversification Opportunities for Bajaj Holdings and Bikaji Foods
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bajaj and Bikaji is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Bikaji Foods International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bikaji Foods Interna and Bajaj Holdings 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 Bajaj Holdings Investment are associated (or correlated) with Bikaji Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bikaji Foods Interna has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Bikaji Foods go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Bikaji Foods
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 1.09 times more return on investment than Bikaji Foods. However, Bajaj Holdings is 1.09 times more volatile than Bikaji Foods International. It trades about 0.01 of its potential returns per unit of risk. Bikaji Foods International is currently generating about -0.16 per unit of risk. If you would invest 1,156,200 in Bajaj Holdings Investment on November 4, 2024 and sell it today you would lose (230.00) from holding Bajaj Holdings Investment or give up 0.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. Bikaji Foods International
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Bikaji Foods Interna |
Bajaj Holdings and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Bikaji Foods
The main advantage of trading using opposite Bajaj Holdings and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Bikaji Foods 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 Bikaji Foods will offset losses from the drop in Bikaji Foods' long position.| Bajaj Holdings vs. Nalwa Sons Investments | Bajaj Holdings vs. Tata Investment | Bajaj Holdings vs. SIL Investments Limited | Bajaj Holdings vs. Indian Card Clothing |
| Bikaji Foods vs. ILFS Investment Managers | Bikaji Foods vs. Bajaj Holdings Investment | Bikaji Foods vs. Max Healthcare Institute | Bikaji Foods vs. Global Health 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |