Correlation Between BF Investment and Spencers Retail
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By analyzing existing cross correlation between BF Investment Limited and Spencers Retail Limited, you can compare the effects of market volatilities on BF Investment and Spencers Retail 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 Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Spencers Retail.
Diversification Opportunities for BF Investment and Spencers Retail
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BFINVEST and Spencers is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail 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 Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of BF Investment i.e., BF Investment and Spencers Retail go up and down completely randomly.
Pair Corralation between BF Investment and Spencers Retail
Assuming the 90 days trading horizon BF Investment Limited is expected to under-perform the Spencers Retail. But the stock apears to be less risky and, when comparing its historical volatility, BF Investment Limited is 1.36 times less risky than Spencers Retail. The stock trades about -0.07 of its potential returns per unit of risk. The Spencers Retail Limited is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 8,782 in Spencers Retail Limited on September 12, 2024 and sell it today you would earn a total of 575.00 from holding Spencers Retail Limited or generate 6.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Investment Limited vs. Spencers Retail Limited
Performance |
| Timeline |
| BF Investment Limited |
| Spencers Retail |
BF Investment and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Spencers Retail
The main advantage of trading using opposite BF Investment and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's 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 |
| Spencers Retail vs. Hemisphere Properties India | Spencers Retail vs. Indo Borax Chemicals | Spencers Retail vs. Kingfa Science Technology | Spencers Retail vs. Alkali Metals 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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