Correlation Between BF Investment and Den Networks
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By analyzing existing cross correlation between BF Investment Limited and Den Networks Limited, you can compare the effects of market volatilities on BF Investment and Den Networks 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 Den Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Den Networks.
Diversification Opportunities for BF Investment and Den Networks
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BFINVEST and Den is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Den Networks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Den Networks Limited 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 Den Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Den Networks Limited has no effect on the direction of BF Investment i.e., BF Investment and Den Networks go up and down completely randomly.
Pair Corralation between BF Investment and Den Networks
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.39 times more return on investment than Den Networks. However, BF Investment is 1.39 times more volatile than Den Networks Limited. It trades about 0.11 of its potential returns per unit of risk. Den Networks Limited is currently generating about -0.07 per unit of risk. If you would invest 61,085 in BF Investment Limited on September 12, 2024 and sell it today you would earn a total of 12,870 from holding BF Investment Limited or generate 21.07% 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. Den Networks Limited
Performance |
| Timeline |
| BF Investment Limited |
| Den Networks Limited |
BF Investment and Den Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Den Networks
The main advantage of trading using opposite BF Investment and Den Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Den Networks 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 Den Networks will offset losses from the drop in Den Networks' long position.| BF Investment vs. MRF Limited | BF Investment vs. JSW Holdings Limited | BF Investment vs. Maharashtra Scooters Limited | BF Investment vs. Nalwa Sons Investments |
| Den Networks vs. Bigbloc Construction Limited | Den Networks vs. LT Foods Limited | Den Networks vs. Apex Frozen Foods | Den Networks vs. Action Construction Equipment |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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