Correlation Between BF Investment and EIH Associated
Specify exactly 2 symbols:
By analyzing existing cross correlation between BF Investment Limited and EIH Associated Hotels, you can compare the effects of market volatilities on BF Investment and EIH Associated 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 EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and EIH Associated.
Diversification Opportunities for BF Investment and EIH Associated
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BFINVEST and EIH is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and EIH Associated Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIH Associated Hotels 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 EIH Associated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIH Associated Hotels has no effect on the direction of BF Investment i.e., BF Investment and EIH Associated go up and down completely randomly.
Pair Corralation between BF Investment and EIH Associated
Assuming the 90 days trading horizon BF Investment Limited is expected to under-perform the EIH Associated. But the stock apears to be less risky and, when comparing its historical volatility, BF Investment Limited is 1.21 times less risky than EIH Associated. The stock trades about -0.35 of its potential returns per unit of risk. The EIH Associated Hotels is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 40,750 in EIH Associated Hotels on November 1, 2024 and sell it today you would lose (3,700) from holding EIH Associated Hotels or give up 9.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Investment Limited vs. EIH Associated Hotels
Performance |
| Timeline |
| BF Investment Limited |
| EIH Associated Hotels |
BF Investment and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and EIH Associated
The main advantage of trading using opposite BF Investment and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, EIH Associated 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 EIH Associated will offset losses from the drop in EIH Associated's long position.| BF Investment vs. Jaypee Infratech Limited | BF Investment vs. LT Technology Services | BF Investment vs. PYRAMID TECHNOPLAST ORD | BF Investment vs. Generic Engineering Construction |
| EIH Associated vs. Alkali Metals Limited | EIH Associated vs. Imagicaaworld Entertainment Limited | EIH Associated vs. Next Mediaworks Limited | EIH Associated vs. Entertainment Network 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |