Correlation Between BF Utilities and Hisar Metal
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By analyzing existing cross correlation between BF Utilities Limited and Hisar Metal Industries, you can compare the effects of market volatilities on BF Utilities and Hisar Metal 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 Hisar Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and Hisar Metal.
Diversification Opportunities for BF Utilities and Hisar Metal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BFUTILITIE and Hisar is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited and Hisar Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisar Metal Industries 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 Hisar Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisar Metal Industries has no effect on the direction of BF Utilities i.e., BF Utilities and Hisar Metal go up and down completely randomly.
Pair Corralation between BF Utilities and Hisar Metal
Assuming the 90 days trading horizon BF Utilities Limited is expected to generate 1.03 times more return on investment than Hisar Metal. However, BF Utilities is 1.03 times more volatile than Hisar Metal Industries. It trades about 0.07 of its potential returns per unit of risk. Hisar Metal Industries is currently generating about 0.03 per unit of risk. If you would invest 37,600 in BF Utilities Limited on October 15, 2024 and sell it today you would earn a total of 50,390 from holding BF Utilities Limited or generate 134.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
BF Utilities Limited vs. Hisar Metal Industries
Performance |
| Timeline |
| BF Utilities Limited |
| Hisar Metal Industries |
BF Utilities and Hisar Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Utilities and Hisar Metal
The main advantage of trading using opposite BF Utilities and Hisar Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities position performs unexpectedly, Hisar Metal 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 Hisar Metal will offset losses from the drop in Hisar Metal's long position.| BF Utilities vs. Elin Electronics Limited | BF Utilities vs. Diligent Media | BF Utilities vs. HT Media Limited | BF Utilities vs. 21st Century Management |
| Hisar Metal vs. Teamlease Services Limited | Hisar Metal vs. NRB Industrial Bearings | Hisar Metal vs. Shyam Metalics and | Hisar Metal vs. Shivalik Bimetal Controls |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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