Correlation Between BF Investment and Indian Overseas
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By analyzing existing cross correlation between BF Investment Limited and Indian Overseas Bank, you can compare the effects of market volatilities on BF Investment and Indian Overseas 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 Indian Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Indian Overseas.
Diversification Opportunities for BF Investment and Indian Overseas
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between BFINVEST and Indian is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Indian Overseas Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Overseas Bank 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 Indian Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Overseas Bank has no effect on the direction of BF Investment i.e., BF Investment and Indian Overseas go up and down completely randomly.
Pair Corralation between BF Investment and Indian Overseas
Assuming the 90 days trading horizon BF Investment Limited is expected to under-perform the Indian Overseas. In addition to that, BF Investment is 1.62 times more volatile than Indian Overseas Bank. It trades about -0.22 of its total potential returns per unit of risk. Indian Overseas Bank is currently generating about -0.33 per unit of volatility. If you would invest 5,748 in Indian Overseas Bank on October 10, 2024 and sell it today you would lose (637.00) from holding Indian Overseas Bank or give up 11.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Investment Limited vs. Indian Overseas Bank
Performance |
| Timeline |
| BF Investment Limited |
| Indian Overseas Bank |
BF Investment and Indian Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Indian Overseas
The main advantage of trading using opposite BF Investment and Indian Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Indian Overseas 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 Indian Overseas will offset losses from the drop in Indian Overseas' long position.| BF Investment vs. Sonata Software Limited | BF Investment vs. Spencers Retail Limited | BF Investment vs. Hexa Tradex Limited | BF Investment vs. Vertoz Advertising Limited |
| Indian Overseas vs. The State Trading | Indian Overseas vs. Hi Tech Pipes Limited | Indian Overseas vs. BF Investment Limited | Indian Overseas vs. The Investment Trust |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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