Correlation Between BF Utilities and Entero Healthcare
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By analyzing existing cross correlation between BF Utilities Limited and Entero Healthcare Solutions, you can compare the effects of market volatilities on BF Utilities and Entero Healthcare 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 Utilities with a short position of Entero Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and Entero Healthcare.
Diversification Opportunities for BF Utilities and Entero Healthcare
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BFUTILITIE and Entero is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited and Entero Healthcare Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entero Healthcare and BF Utilities 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 Utilities Limited are associated (or correlated) with Entero Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entero Healthcare has no effect on the direction of BF Utilities i.e., BF Utilities and Entero Healthcare go up and down completely randomly.
Pair Corralation between BF Utilities and Entero Healthcare
Assuming the 90 days trading horizon BF Utilities Limited is expected to generate 0.77 times more return on investment than Entero Healthcare. However, BF Utilities Limited is 1.31 times less risky than Entero Healthcare. It trades about 0.4 of its potential returns per unit of risk. Entero Healthcare Solutions is currently generating about -0.06 per unit of risk. If you would invest 84,800 in BF Utilities Limited on September 3, 2024 and sell it today you would earn a total of 13,815 from holding BF Utilities Limited or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Utilities Limited vs. Entero Healthcare Solutions
Performance |
| Timeline |
| BF Utilities Limited |
| Entero Healthcare |
BF Utilities and Entero Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Utilities and Entero Healthcare
The main advantage of trading using opposite BF Utilities and Entero Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities position performs unexpectedly, Entero Healthcare 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 Entero Healthcare will offset losses from the drop in Entero Healthcare's long position.| BF Utilities vs. Reliance Industries Limited | BF Utilities vs. HDFC Bank Limited | BF Utilities vs. Indo Borax Chemicals | BF Utilities vs. Kingfa Science Technology |
| Entero Healthcare vs. Life Insurance | Entero Healthcare vs. Power Finance | Entero Healthcare vs. HDFC Bank Limited | Entero Healthcare vs. State Bank of |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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