Correlation Between BF Investment and GACM Technologies
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By analyzing existing cross correlation between BF Investment Limited and GACM Technologies Limited, you can compare the effects of market volatilities on BF Investment and GACM Technologies 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 GACM Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and GACM Technologies.
Diversification Opportunities for BF Investment and GACM Technologies
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BFINVEST and GACM is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and GACM Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GACM Technologies 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 GACM Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GACM Technologies has no effect on the direction of BF Investment i.e., BF Investment and GACM Technologies go up and down completely randomly.
Pair Corralation between BF Investment and GACM Technologies
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 0.97 times more return on investment than GACM Technologies. However, BF Investment Limited is 1.03 times less risky than GACM Technologies. It trades about 0.07 of its potential returns per unit of risk. GACM Technologies Limited is currently generating about -0.21 per unit of risk. If you would invest 29,090 in BF Investment Limited on September 3, 2024 and sell it today you would earn a total of 44,190 from holding BF Investment Limited or generate 151.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.41% |
| Values | Daily Returns |
BF Investment Limited vs. GACM Technologies Limited
Performance |
| Timeline |
| BF Investment Limited |
| GACM Technologies |
BF Investment and GACM Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and GACM Technologies
The main advantage of trading using opposite BF Investment and GACM Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, GACM Technologies 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 GACM Technologies will offset losses from the drop in GACM Technologies' long position.| BF Investment vs. Procter Gamble Health | BF Investment vs. Associated Alcohols Breweries | BF Investment vs. EMBASSY OFFICE PARKS | BF Investment vs. Ratnamani Metals Tubes |
| GACM Technologies vs. Kingfa Science Technology | GACM Technologies vs. Modi Rubber Limited | GACM Technologies vs. ideaForge Technology Limited | GACM Technologies vs. Compucom Software 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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