Correlation Between BF Investment and Hemisphere Properties
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By analyzing existing cross correlation between BF Investment Limited and Hemisphere Properties India, you can compare the effects of market volatilities on BF Investment and Hemisphere Properties 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 Hemisphere Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Hemisphere Properties.
Diversification Opportunities for BF Investment and Hemisphere Properties
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BFINVEST and Hemisphere is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Hemisphere Properties India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Properties 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 Hemisphere Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Properties has no effect on the direction of BF Investment i.e., BF Investment and Hemisphere Properties go up and down completely randomly.
Pair Corralation between BF Investment and Hemisphere Properties
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.4 times more return on investment than Hemisphere Properties. However, BF Investment is 1.4 times more volatile than Hemisphere Properties India. It trades about 0.17 of its potential returns per unit of risk. Hemisphere Properties India is currently generating about -0.11 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. Hemisphere Properties India
Performance |
| Timeline |
| BF Investment Limited |
| Hemisphere Properties |
BF Investment and Hemisphere Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Hemisphere Properties
The main advantage of trading using opposite BF Investment and Hemisphere Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Hemisphere Properties 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 Hemisphere Properties will offset losses from the drop in Hemisphere Properties' long position.| BF Investment vs. MRF Limited | BF Investment vs. Nalwa Sons Investments | BF Investment vs. Kalyani Investment | BF Investment vs. Pilani Investment and |
| Hemisphere Properties vs. Reliance Industries Limited | Hemisphere Properties vs. HDFC Bank Limited | Hemisphere Properties vs. India Glycols Limited | Hemisphere Properties vs. Indo Borax Chemicals |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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