Correlation Between Bajaj Holdings and Foods Inns
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By analyzing existing cross correlation between Bajaj Holdings Investment and Foods Inns Limited, you can compare the effects of market volatilities on Bajaj Holdings and Foods Inns 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 Foods Inns. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and Foods Inns.
Diversification Opportunities for Bajaj Holdings and Foods Inns
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bajaj and Foods is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and Foods Inns Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foods Inns Limited 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 Foods Inns. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foods Inns Limited has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and Foods Inns go up and down completely randomly.
Pair Corralation between Bajaj Holdings and Foods Inns
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 0.66 times more return on investment than Foods Inns. However, Bajaj Holdings Investment is 1.51 times less risky than Foods Inns. It trades about 0.06 of its potential returns per unit of risk. Foods Inns Limited is currently generating about -0.05 per unit of risk. If you would invest 957,830 in Bajaj Holdings Investment on October 26, 2024 and sell it today you would earn a total of 162,000 from holding Bajaj Holdings Investment or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. Foods Inns Limited
Performance |
| Timeline |
| Bajaj Holdings Investment |
| Foods Inns Limited |
Bajaj Holdings and Foods Inns Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and Foods Inns
The main advantage of trading using opposite Bajaj Holdings and Foods Inns positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, Foods Inns 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 Foods Inns will offset losses from the drop in Foods Inns' long position.| Bajaj Holdings vs. Jubilant Foodworks Limited | Bajaj Holdings vs. Mrs Bectors Food | Bajaj Holdings vs. Manaksia Coated Metals | Bajaj Holdings vs. Rajnandini Metal Limited |
| Foods Inns vs. PNC Infratech Limited | Foods Inns vs. AVALON TECHNOLOGIES LTD | Foods Inns vs. The Federal Bank | Foods Inns vs. PB Fintech 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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