Correlation Between BF Investment and V Mart
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By analyzing existing cross correlation between BF Investment Limited and V Mart Retail Limited, you can compare the effects of market volatilities on BF Investment and V Mart 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 V Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and V Mart.
Diversification Opportunities for BF Investment and V Mart
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between BFINVEST and VMART is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and V Mart Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V Mart 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 V Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V Mart Retail has no effect on the direction of BF Investment i.e., BF Investment and V Mart go up and down completely randomly.
Pair Corralation between BF Investment and V Mart
Assuming the 90 days trading horizon BF Investment Limited is expected to under-perform the V Mart. But the stock apears to be less risky and, when comparing its historical volatility, BF Investment Limited is 1.71 times less risky than V Mart. The stock trades about -0.12 of its potential returns per unit of risk. The V Mart Retail Limited is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 349,030 in V Mart Retail Limited on September 17, 2024 and sell it today you would earn a total of 40,155 from holding V Mart Retail Limited or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
BF Investment Limited vs. V Mart Retail Limited
Performance |
| Timeline |
| BF Investment Limited |
| V Mart Retail |
BF Investment and V Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Investment and V Mart
The main advantage of trading using opposite BF Investment and V Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, V Mart 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 V Mart will offset losses from the drop in V Mart's long position.| BF Investment vs. MRF Limited | BF Investment vs. JSW Holdings Limited | BF Investment vs. Maharashtra Scooters Limited | BF Investment vs. Nalwa Sons Investments |
| V Mart vs. R S Software | V Mart vs. BF Investment Limited | V Mart vs. Tata Investment | V Mart vs. FCS Software Solutions |
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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