Correlation Between BF Utilities and Indo Amines
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By analyzing existing cross correlation between BF Utilities Limited and Indo Amines Limited, you can compare the effects of market volatilities on BF Utilities and Indo Amines 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 Indo Amines. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and Indo Amines.
Diversification Opportunities for BF Utilities and Indo Amines
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between BFUTILITIE and Indo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited and Indo Amines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Amines Limited 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 Indo Amines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Amines Limited has no effect on the direction of BF Utilities i.e., BF Utilities and Indo Amines go up and down completely randomly.
Pair Corralation between BF Utilities and Indo Amines
Assuming the 90 days trading horizon BF Utilities is expected to generate 1.86 times less return on investment than Indo Amines. But when comparing it to its historical volatility, BF Utilities Limited is 1.35 times less risky than Indo Amines. It trades about 0.08 of its potential returns per unit of risk. Indo Amines Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 11,117 in Indo Amines Limited on September 2, 2024 and sell it today you would earn a total of 6,346 from holding Indo Amines Limited or generate 57.08% 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. Indo Amines Limited
Performance |
| Timeline |
| BF Utilities Limited |
| Indo Amines Limited |
BF Utilities and Indo Amines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Utilities and Indo Amines
The main advantage of trading using opposite BF Utilities and Indo Amines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities position performs unexpectedly, Indo Amines 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 Indo Amines will offset losses from the drop in Indo Amines' long position.| BF Utilities vs. Dev Information Technology | BF Utilities vs. The Federal Bank | BF Utilities vs. Hemisphere Properties India | BF Utilities vs. Geojit Financial Services |
| Indo Amines vs. Hi Tech Pipes Limited | Indo Amines vs. Reliance Communications Limited | Indo Amines vs. Tamilnadu Telecommunication Limited | Indo Amines vs. Tata Communications 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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