Correlation Between Bajaj Holdings and Bikaji Foods
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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
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bajaj and Bikaji is 0.29. 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 is expected to generate 1.32 times less return on investment than Bikaji Foods. But when comparing it to its historical volatility, Bajaj Holdings Investment is 1.24 times less risky than Bikaji Foods. It trades about 0.08 of its potential returns per unit of risk. Bikaji Foods International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 39,327 in Bikaji Foods International on September 2, 2024 and sell it today you would earn a total of 40,943 from holding Bikaji Foods International or generate 104.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| 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. The Indian Hotels | Bajaj Holdings vs. Blue Coast Hotels | Bajaj Holdings vs. Viceroy Hotels Limited | Bajaj Holdings vs. Paramount Communications Limited |
| Bikaji Foods vs. Advani Hotels Resorts | Bikaji Foods vs. Sapphire Foods India | Bikaji Foods vs. Juniper Hotels | Bikaji Foods vs. Asian Hotels 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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