Correlation Between BF Investment and Federal Bank
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By analyzing existing cross correlation between BF Investment Limited and The Federal Bank, you can compare the effects of market volatilities on BF Investment and Federal Bank 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 Federal Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Federal Bank.
Diversification Opportunities for BF Investment and Federal Bank
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BFINVEST and Federal is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and The Federal Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Bank 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 Federal Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Bank has no effect on the direction of BF Investment i.e., BF Investment and Federal Bank go up and down completely randomly.
Pair Corralation between BF Investment and Federal Bank
Assuming the 90 days trading horizon BF Investment Limited is expected to under-perform the Federal Bank. In addition to that, BF Investment is 1.72 times more volatile than The Federal Bank. It trades about -0.03 of its total potential returns per unit of risk. The Federal Bank is currently generating about -0.03 per unit of volatility. If you would invest 19,674 in The Federal Bank on October 14, 2024 and sell it today you would lose (764.00) from holding The Federal Bank or give up 3.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Investment Limited vs. The Federal Bank
Performance |
| Timeline |
| BF Investment Limited |
| Federal Bank |
BF Investment and Federal Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Federal Bank
The main advantage of trading using opposite BF Investment and Federal Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Federal Bank 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 Federal Bank will offset losses from the drop in Federal Bank's long position.| BF Investment vs. Mtar Technologies Limited | BF Investment vs. Cambridge Technology Enterprises | BF Investment vs. Kingfa Science Technology | BF Investment vs. 63 moons technologies |
| Federal Bank vs. SBI Life Insurance | Federal Bank vs. Karur Vysya Bank | Federal Bank vs. General Insurance | Federal Bank vs. Kalyani Investment |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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