Correlation Between BF Investment and Jai Balaji
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By analyzing existing cross correlation between BF Investment Limited and Jai Balaji Industries, you can compare the effects of market volatilities on BF Investment and Jai Balaji 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 Jai Balaji. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Jai Balaji.
Diversification Opportunities for BF Investment and Jai Balaji
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between BFINVEST and Jai is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Jai Balaji Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jai Balaji 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 Jai Balaji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jai Balaji Industries has no effect on the direction of BF Investment i.e., BF Investment and Jai Balaji go up and down completely randomly.
Pair Corralation between BF Investment and Jai Balaji
Assuming the 90 days trading horizon BF Investment is expected to generate 3.89 times less return on investment than Jai Balaji. In addition to that, BF Investment is 1.01 times more volatile than Jai Balaji Industries. It trades about 0.05 of its total potential returns per unit of risk. Jai Balaji Industries is currently generating about 0.2 per unit of volatility. If you would invest 5,450 in Jai Balaji Industries on October 14, 2024 and sell it today you would earn a total of 81,145 from holding Jai Balaji Industries or generate 1488.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.77% |
| Values | Daily Returns |
BF Investment Limited vs. Jai Balaji Industries
Performance |
| Timeline |
| BF Investment Limited |
| Jai Balaji Industries |
BF Investment and Jai Balaji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Jai Balaji
The main advantage of trading using opposite BF Investment and Jai Balaji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Jai Balaji 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 Jai Balaji will offset losses from the drop in Jai Balaji's long position.| BF Investment vs. Mtar Technologies Limited | BF Investment vs. Cambridge Technology Enterprises | BF Investment vs. Kingfa Science Technology | BF Investment vs. 63 moons technologies |
| Jai Balaji vs. V2 Retail Limited | Jai Balaji vs. Cartrade Tech Limited | Jai Balaji vs. BF Investment Limited | Jai Balaji vs. HDFC Asset Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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