Correlation Between BF Investment and HEG
Specify exactly 2 symbols:
By analyzing existing cross correlation between BF Investment Limited and HEG Limited, you can compare the effects of market volatilities on BF Investment and HEG 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 HEG. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and HEG.
Diversification Opportunities for BF Investment and HEG
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BFINVEST and HEG is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and HEG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEG Limited 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 HEG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEG Limited has no effect on the direction of BF Investment i.e., BF Investment and HEG go up and down completely randomly.
Pair Corralation between BF Investment and HEG
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.11 times more return on investment than HEG. However, BF Investment is 1.11 times more volatile than HEG Limited. It trades about -0.25 of its potential returns per unit of risk. HEG Limited is currently generating about -0.37 per unit of risk. If you would invest 69,480 in BF Investment Limited on October 22, 2024 and sell it today you would lose (10,565) from holding BF Investment Limited or give up 15.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Investment Limited vs. HEG Limited
Performance |
| Timeline |
| BF Investment Limited |
| HEG Limited |
BF Investment and HEG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and HEG
The main advantage of trading using opposite BF Investment and HEG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, HEG 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 HEG will offset losses from the drop in HEG's long position.| BF Investment vs. Yatra Online Limited | BF Investment vs. KNR Constructions Limited | BF Investment vs. FCS Software Solutions | BF Investment vs. V2 Retail Limited |
| HEG vs. Dhunseri Investments Limited | HEG vs. Tata Investment | HEG vs. Zydus Wellness Limited | HEG vs. The Byke Hospitality |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world |