Correlation Between BF Investment and KNR Constructions
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By analyzing existing cross correlation between BF Investment Limited and KNR Constructions Limited, you can compare the effects of market volatilities on BF Investment and KNR Constructions 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 KNR Constructions. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and KNR Constructions.
Diversification Opportunities for BF Investment and KNR Constructions
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BFINVEST and KNR is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and KNR Constructions Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KNR Constructions 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 KNR Constructions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KNR Constructions has no effect on the direction of BF Investment i.e., BF Investment and KNR Constructions go up and down completely randomly.
Pair Corralation between BF Investment and KNR Constructions
Assuming the 90 days trading horizon BF Investment is expected to generate 1.21 times less return on investment than KNR Constructions. In addition to that, BF Investment is 1.04 times more volatile than KNR Constructions Limited. It trades about 0.17 of its total potential returns per unit of risk. KNR Constructions Limited is currently generating about 0.21 per unit of volatility. If you would invest 28,675 in KNR Constructions Limited on August 29, 2024 and sell it today you would earn a total of 3,450 from holding KNR Constructions Limited or generate 12.03% 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. KNR Constructions Limited
Performance |
| Timeline |
| BF Investment Limited |
| KNR Constructions |
BF Investment and KNR Constructions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and KNR Constructions
The main advantage of trading using opposite BF Investment and KNR Constructions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, KNR Constructions 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 KNR Constructions will offset losses from the drop in KNR Constructions' long position.| BF Investment vs. MRF Limited | BF Investment vs. Nalwa Sons Investments | BF Investment vs. Kalyani Investment | BF Investment vs. Pilani Investment and |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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