Correlation Between BF Investment and NIFTY SUMER
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By analyzing existing cross correlation between BF Investment Limited and NIFTY SUMER DURABLES, you can compare the effects of market volatilities on BF Investment and NIFTY SUMER 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 NIFTY SUMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and NIFTY SUMER.
Diversification Opportunities for BF Investment and NIFTY SUMER
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BFINVEST and NIFTY is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and NIFTY SUMER DURABLES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIFTY SUMER DURABLES 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 NIFTY SUMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIFTY SUMER DURABLES has no effect on the direction of BF Investment i.e., BF Investment and NIFTY SUMER go up and down completely randomly.
Pair Corralation between BF Investment and NIFTY SUMER
Assuming the 90 days trading horizon BF Investment Limited is expected to under-perform the NIFTY SUMER. In addition to that, BF Investment is 1.83 times more volatile than NIFTY SUMER DURABLES. It trades about -0.2 of its total potential returns per unit of risk. NIFTY SUMER DURABLES is currently generating about -0.13 per unit of volatility. If you would invest 4,238,660 in NIFTY SUMER DURABLES on November 8, 2024 and sell it today you would lose (357,000) from holding NIFTY SUMER DURABLES or give up 8.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Investment Limited vs. NIFTY SUMER DURABLES
Performance |
| Timeline |
BF Investment and NIFTY SUMER Volatility Contrast
Predicted Return Density |
| Returns |
BF Investment Limited
Pair trading matchups for BF Investment
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Pair Trading with BF Investment and NIFTY SUMER
The main advantage of trading using opposite BF Investment and NIFTY SUMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, NIFTY SUMER 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 NIFTY SUMER will offset losses from the drop in NIFTY SUMER's long position.| BF Investment vs. MRF Limited | BF Investment vs. The Orissa Minerals | BF Investment vs. Honeywell Automation India | BF Investment vs. Page Industries Limited |
| NIFTY SUMER vs. Industrial Investment Trust | NIFTY SUMER vs. Shyam Metalics and | NIFTY SUMER vs. Radiant Cash Management | NIFTY SUMER vs. Silgo Retail 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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