Correlation Between BF Investment and SINCLAIRS HOTELS
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By analyzing existing cross correlation between BF Investment Limited and SINCLAIRS HOTELS ORD, you can compare the effects of market volatilities on BF Investment and SINCLAIRS HOTELS 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 SINCLAIRS HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and SINCLAIRS HOTELS.
Diversification Opportunities for BF Investment and SINCLAIRS HOTELS
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BFINVEST and SINCLAIRS is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and SINCLAIRS HOTELS ORD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINCLAIRS HOTELS ORD 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 SINCLAIRS HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINCLAIRS HOTELS ORD has no effect on the direction of BF Investment i.e., BF Investment and SINCLAIRS HOTELS go up and down completely randomly.
Pair Corralation between BF Investment and SINCLAIRS HOTELS
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.23 times more return on investment than SINCLAIRS HOTELS. However, BF Investment is 1.23 times more volatile than SINCLAIRS HOTELS ORD. It trades about 0.05 of its potential returns per unit of risk. SINCLAIRS HOTELS ORD is currently generating about -0.04 per unit of risk. If you would invest 32,140 in BF Investment Limited on October 27, 2024 and sell it today you would earn a total of 24,595 from holding BF Investment Limited or generate 76.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.29% |
| Values | Daily Returns |
BF Investment Limited vs. SINCLAIRS HOTELS ORD
Performance |
| Timeline |
| BF Investment Limited |
| SINCLAIRS HOTELS ORD |
BF Investment and SINCLAIRS HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and SINCLAIRS HOTELS
The main advantage of trading using opposite BF Investment and SINCLAIRS HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, SINCLAIRS HOTELS 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 SINCLAIRS HOTELS will offset losses from the drop in SINCLAIRS HOTELS's long position.| BF Investment vs. Reliance Industries Limited | BF Investment vs. Life Insurance | BF Investment vs. Indian Oil | BF Investment vs. Oil Natural Gas |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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