Correlation Between BF Investment and Gokul Refoils
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By analyzing existing cross correlation between BF Investment Limited and Gokul Refoils and, you can compare the effects of market volatilities on BF Investment and Gokul Refoils 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 Gokul Refoils. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Gokul Refoils.
Diversification Opportunities for BF Investment and Gokul Refoils
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BFINVEST and Gokul is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Gokul Refoils and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gokul Refoils 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 Gokul Refoils. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gokul Refoils has no effect on the direction of BF Investment i.e., BF Investment and Gokul Refoils go up and down completely randomly.
Pair Corralation between BF Investment and Gokul Refoils
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.04 times more return on investment than Gokul Refoils. However, BF Investment is 1.04 times more volatile than Gokul Refoils and. It trades about 0.05 of its potential returns per unit of risk. Gokul Refoils and is currently generating about 0.04 per unit of risk. If you would invest 34,145 in BF Investment Limited on October 13, 2024 and sell it today you would earn a total of 24,530 from holding BF Investment Limited or generate 71.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
BF Investment Limited vs. Gokul Refoils and
Performance |
| Timeline |
| BF Investment Limited |
| Gokul Refoils |
BF Investment and Gokul Refoils Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Gokul Refoils
The main advantage of trading using opposite BF Investment and Gokul Refoils positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Gokul Refoils 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 Gokul Refoils will offset losses from the drop in Gokul Refoils' long position.| BF Investment vs. Pritish Nandy Communications | BF Investment vs. Vibhor Steel Tubes | BF Investment vs. Kalyani Steels Limited | BF Investment vs. The Hi Tech Gears |
| Gokul Refoils vs. BF Investment Limited | Gokul Refoils vs. Future Retail Limited | Gokul Refoils vs. Tube Investments of | Gokul Refoils vs. Landmark Cars 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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