Correlation Between BF Investment and Gujarat Raffia
Specify exactly 2 symbols:
By analyzing existing cross correlation between BF Investment Limited and Gujarat Raffia Industries, you can compare the effects of market volatilities on BF Investment and Gujarat Raffia 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 Gujarat Raffia. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Gujarat Raffia.
Diversification Opportunities for BF Investment and Gujarat Raffia
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BFINVEST and Gujarat is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Gujarat Raffia Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gujarat Raffia Industries 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 Gujarat Raffia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gujarat Raffia Industries has no effect on the direction of BF Investment i.e., BF Investment and Gujarat Raffia go up and down completely randomly.
Pair Corralation between BF Investment and Gujarat Raffia
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.1 times more return on investment than Gujarat Raffia. However, BF Investment is 1.1 times more volatile than Gujarat Raffia Industries. It trades about 0.17 of its potential returns per unit of risk. Gujarat Raffia Industries is currently generating about 0.1 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. Gujarat Raffia Industries
Performance |
| Timeline |
| BF Investment Limited |
| Gujarat Raffia Industries |
BF Investment and Gujarat Raffia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Gujarat Raffia
The main advantage of trading using opposite BF Investment and Gujarat Raffia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Gujarat Raffia 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 Gujarat Raffia will offset losses from the drop in Gujarat Raffia's long position.| BF Investment vs. MRF Limited | BF Investment vs. Nalwa Sons Investments | BF Investment vs. Kalyani Investment | BF Investment vs. Vardhman Holdings Limited |
| Gujarat Raffia vs. India Glycols Limited | Gujarat Raffia vs. Indo Borax Chemicals | Gujarat Raffia vs. Kingfa Science Technology | Gujarat Raffia vs. Alkali Metals 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |