Correlation Between BF Investment and Cantabil Retail
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By analyzing existing cross correlation between BF Investment Limited and Cantabil Retail India, you can compare the effects of market volatilities on BF Investment and Cantabil Retail 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 Cantabil Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Cantabil Retail.
Diversification Opportunities for BF Investment and Cantabil Retail
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BFINVEST and Cantabil is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Cantabil Retail India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantabil Retail India 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 Cantabil Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantabil Retail India has no effect on the direction of BF Investment i.e., BF Investment and Cantabil Retail go up and down completely randomly.
Pair Corralation between BF Investment and Cantabil Retail
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.06 times more return on investment than Cantabil Retail. However, BF Investment is 1.06 times more volatile than Cantabil Retail India. It trades about 0.11 of its potential returns per unit of risk. Cantabil Retail India is currently generating about 0.07 per unit of risk. If you would invest 52,285 in BF Investment Limited on September 2, 2024 and sell it today you would earn a total of 20,995 from holding BF Investment Limited or generate 40.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Investment Limited vs. Cantabil Retail India
Performance |
| Timeline |
| BF Investment Limited |
| Cantabil Retail India |
BF Investment and Cantabil Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Cantabil Retail
The main advantage of trading using opposite BF Investment and Cantabil Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Cantabil Retail 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 Cantabil Retail will offset losses from the drop in Cantabil Retail's long position.| BF Investment vs. Sonata Software Limited | BF Investment vs. GM Breweries Limited | BF Investment vs. California Software | BF Investment vs. STEEL EXCHANGE INDIA |
| Cantabil Retail vs. Motilal Oswal Financial | Cantabil Retail vs. Punjab National Bank | Cantabil Retail vs. Kavveri Telecom Products | Cantabil Retail vs. Ortel Communications 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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