Correlation Between BF Investment and Indo Borax
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By analyzing existing cross correlation between BF Investment Limited and Indo Borax Chemicals, you can compare the effects of market volatilities on BF Investment and Indo Borax 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 Indo Borax. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Indo Borax.
Diversification Opportunities for BF Investment and Indo Borax
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BFINVEST and Indo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Indo Borax Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Borax Chemicals 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 Indo Borax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Borax Chemicals has no effect on the direction of BF Investment i.e., BF Investment and Indo Borax go up and down completely randomly.
Pair Corralation between BF Investment and Indo Borax
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 0.8 times more return on investment than Indo Borax. However, BF Investment Limited is 1.24 times less risky than Indo Borax. It trades about 0.22 of its potential returns per unit of risk. Indo Borax Chemicals is currently generating about 0.03 per unit of risk. If you would invest 65,065 in BF Investment Limited on September 1, 2024 and sell it today you would earn a total of 8,215 from holding BF Investment Limited or generate 12.63% 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. Indo Borax Chemicals
Performance |
| Timeline |
| BF Investment Limited |
| Indo Borax Chemicals |
BF Investment and Indo Borax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Indo Borax
The main advantage of trading using opposite BF Investment and Indo Borax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Indo Borax 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 Indo Borax will offset losses from the drop in Indo Borax's long position.| BF Investment vs. Madhav Copper Limited | BF Investment vs. Neogen Chemicals Limited | BF Investment vs. Ratnamani Metals Tubes | BF Investment vs. Tips Music Limited |
| Indo Borax vs. Vardhman Special Steels | Indo Borax vs. Vraj Iron and | Indo Borax vs. STEEL EXCHANGE INDIA | Indo Borax vs. BF Investment 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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