Correlation Between BF Investment and JTL Industries
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By analyzing existing cross correlation between BF Investment Limited and JTL Industries, you can compare the effects of market volatilities on BF Investment and JTL Industries 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 JTL Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and JTL Industries.
Diversification Opportunities for BF Investment and JTL Industries
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BFINVEST and JTL is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and JTL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JTL 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 JTL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JTL Industries has no effect on the direction of BF Investment i.e., BF Investment and JTL Industries go up and down completely randomly.
Pair Corralation between BF Investment and JTL Industries
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 0.79 times more return on investment than JTL Industries. However, BF Investment Limited is 1.27 times less risky than JTL Industries. It trades about 0.08 of its potential returns per unit of risk. JTL Industries is currently generating about -0.01 per unit of risk. If you would invest 37,715 in BF Investment Limited on September 12, 2024 and sell it today you would earn a total of 36,265 from holding BF Investment Limited or generate 96.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.42% |
| Values | Daily Returns |
BF Investment Limited vs. JTL Industries
Performance |
| Timeline |
| BF Investment Limited |
| JTL Industries |
BF Investment and JTL Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and JTL Industries
The main advantage of trading using opposite BF Investment and JTL Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, JTL Industries 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 JTL Industries will offset losses from the drop in JTL Industries' long position.| BF Investment vs. Yes Bank Limited | BF Investment vs. Indian Oil | BF Investment vs. Indo Borax Chemicals | BF Investment vs. Kingfa Science Technology |
| JTL Industries vs. BF Investment Limited | JTL Industries vs. AUTHUM INVESTMENT INFRASTRUCTU | JTL Industries vs. Dhunseri Investments Limited | JTL Industries vs. Cholamandalam Investment and |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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