Correlation Between BF Investment and Ankit Metal
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By analyzing existing cross correlation between BF Investment Limited and Ankit Metal Power, you can compare the effects of market volatilities on BF Investment and Ankit Metal 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 BF Investment with a short position of Ankit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Ankit Metal.
Diversification Opportunities for BF Investment and Ankit Metal
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BFINVEST and Ankit is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Ankit Metal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ankit Metal Power and BF Investment 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 BF Investment Limited are associated (or correlated) with Ankit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ankit Metal Power has no effect on the direction of BF Investment i.e., BF Investment and Ankit Metal go up and down completely randomly.
Pair Corralation between BF Investment and Ankit Metal
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.54 times more return on investment than Ankit Metal. However, BF Investment is 1.54 times more volatile than Ankit Metal Power. It trades about -0.21 of its potential returns per unit of risk. Ankit Metal Power is currently generating about -0.5 per unit of risk. If you would invest 69,480 in BF Investment Limited on October 23, 2024 and sell it today you would lose (9,190) from holding BF Investment Limited or give up 13.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Investment Limited vs. Ankit Metal Power
Performance |
| Timeline |
| BF Investment Limited |
| Ankit Metal Power |
BF Investment and Ankit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Ankit Metal
The main advantage of trading using opposite BF Investment and Ankit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Ankit Metal 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 Ankit Metal will offset losses from the drop in Ankit Metal's long position.| BF Investment vs. Indian Railway Finance | BF Investment vs. Cholamandalam Financial Holdings | BF Investment vs. Reliance Industries Limited | BF Investment vs. Tata Consultancy Services |
| Ankit Metal vs. Ratnamani Metals Tubes | Ankit Metal vs. Transport of | Ankit Metal vs. Shyam Metalics and | Ankit Metal vs. Manaksia Coated Metals |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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