Correlation Between BF Investment and Total Transport
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By analyzing existing cross correlation between BF Investment Limited and Total Transport Systems, you can compare the effects of market volatilities on BF Investment and Total Transport 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 Total Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and Total Transport.
Diversification Opportunities for BF Investment and Total Transport
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BFINVEST and Total is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and Total Transport Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Transport Systems 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 Total Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Transport Systems has no effect on the direction of BF Investment i.e., BF Investment and Total Transport go up and down completely randomly.
Pair Corralation between BF Investment and Total Transport
Assuming the 90 days trading horizon BF Investment Limited is expected to generate 1.64 times more return on investment than Total Transport. However, BF Investment is 1.64 times more volatile than Total Transport Systems. It trades about 0.12 of its potential returns per unit of risk. Total Transport Systems is currently generating about -0.32 per unit of risk. If you would invest 61,810 in BF Investment Limited on August 29, 2024 and sell it today you would earn a total of 10,190 from holding BF Investment Limited or generate 16.49% 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. Total Transport Systems
Performance |
| Timeline |
| BF Investment Limited |
| Total Transport Systems |
BF Investment and Total Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and Total Transport
The main advantage of trading using opposite BF Investment and Total Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, Total Transport 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 Total Transport will offset losses from the drop in Total Transport's long position.| BF Investment vs. MRF Limited | BF Investment vs. Nalwa Sons Investments | BF Investment vs. Kalyani Investment | BF Investment vs. Pilani Investment and |
| Total Transport vs. Reliance Industries Limited | Total Transport vs. State Bank of | Total Transport vs. HDFC Bank Limited | Total Transport vs. Oil Natural Gas |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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