Correlation Between BF Investment and Fino Payments
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By analyzing existing cross correlation between BF Investment Limited and Fino Payments Bank, you can compare the effects of market volatilities on BF Investment and Fino Payments 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 Fino Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Fino Payments.
Diversification Opportunities for BF Investment and Fino Payments
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BFINVEST and Fino is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Fino Payments Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fino Payments 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 Fino Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fino Payments Bank has no effect on the direction of BF Investment i.e., BF Investment and Fino Payments go up and down completely randomly.
Pair Corralation between BF Investment and Fino Payments
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.11 times more return on investment than Fino Payments. However, BF Investment is 1.11 times more volatile than Fino Payments Bank. It trades about 0.17 of its potential returns per unit of risk. Fino Payments Bank is currently generating about -0.02 per unit of risk. If you would invest 65,660 in BF Investment Limited on August 29, 2024 and sell it today you would earn a total of 6,340 from holding BF Investment Limited or generate 9.66% 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. Fino Payments Bank
Performance |
| Timeline |
| BF Investment Limited |
| Fino Payments Bank |
BF Investment and Fino Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Fino Payments
The main advantage of trading using opposite BF Investment and Fino Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Fino Payments 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 Fino Payments will offset losses from the drop in Fino Payments' long position.| BF Investment vs. MRF Limited | BF Investment vs. Nalwa Sons Investments | BF Investment vs. Kalyani Investment | BF Investment vs. Pilani Investment and |
| Fino Payments vs. MRF Limited | Fino Payments vs. Nalwa Sons Investments | Fino Payments vs. Kalyani Investment | Fino Payments vs. Pilani Investment and |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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