Correlation Between BF Investment and Genus Power
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By analyzing existing cross correlation between BF Investment Limited and Genus Power Infrastructures, you can compare the effects of market volatilities on BF Investment and Genus Power 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 Genus Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Genus Power.
Diversification Opportunities for BF Investment and Genus Power
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BFINVEST and Genus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Genus Power Infrastructures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genus Power Infrastr 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 Genus Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genus Power Infrastr has no effect on the direction of BF Investment i.e., BF Investment and Genus Power go up and down completely randomly.
Pair Corralation between BF Investment and Genus Power
Assuming the 90 days trading horizon BF Investment is expected to generate 3.18 times less return on investment than Genus Power. But when comparing it to its historical volatility, BF Investment Limited is 1.69 times less risky than Genus Power. It trades about 0.06 of its potential returns per unit of risk. Genus Power Infrastructures is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 40,005 in Genus Power Infrastructures on September 14, 2024 and sell it today you would earn a total of 2,195 from holding Genus Power Infrastructures or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BF Investment Limited vs. Genus Power Infrastructures
Performance |
| Timeline |
| BF Investment Limited |
| Genus Power Infrastr |
BF Investment and Genus Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Genus Power
The main advantage of trading using opposite BF Investment and Genus Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Genus Power 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 Genus Power will offset losses from the drop in Genus Power's long position.| BF Investment vs. Lotus Eye Hospital | BF Investment vs. Medplus Health Services | BF Investment vs. Credo Brands Marketing | BF Investment vs. Akme Fintrade India |
| Genus Power vs. Reliance Industries Limited | Genus Power vs. Oil Natural Gas | Genus Power vs. ICICI Bank Limited | Genus Power vs. Bharti Airtel 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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