Correlation Between BF Utilities and LLOYDS METALS
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By analyzing existing cross correlation between BF Utilities Limited and LLOYDS METALS AND, you can compare the effects of market volatilities on BF Utilities and LLOYDS METALS 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 LLOYDS METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and LLOYDS METALS.
Diversification Opportunities for BF Utilities and LLOYDS METALS
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BFUTILITIE and LLOYDS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited and LLOYDS METALS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLOYDS METALS AND 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 LLOYDS METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLOYDS METALS AND has no effect on the direction of BF Utilities i.e., BF Utilities and LLOYDS METALS go up and down completely randomly.
Pair Corralation between BF Utilities and LLOYDS METALS
Assuming the 90 days trading horizon BF Utilities Limited is expected to generate 0.67 times more return on investment than LLOYDS METALS. However, BF Utilities Limited is 1.49 times less risky than LLOYDS METALS. It trades about 0.38 of its potential returns per unit of risk. LLOYDS METALS AND is currently generating about 0.13 per unit of risk. If you would invest 85,115 in BF Utilities Limited on September 1, 2024 and sell it today you would earn a total of 13,500 from holding BF Utilities Limited or generate 15.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Utilities Limited vs. LLOYDS METALS AND
Performance |
| Timeline |
| BF Utilities Limited |
| LLOYDS METALS AND |
BF Utilities and LLOYDS METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Utilities and LLOYDS METALS
The main advantage of trading using opposite BF Utilities and LLOYDS METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities position performs unexpectedly, LLOYDS METALS 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 LLOYDS METALS will offset losses from the drop in LLOYDS METALS's long position.| BF Utilities vs. Spencers Retail Limited | BF Utilities vs. Shree Pushkar Chemicals | BF Utilities vs. Indraprastha Medical | BF Utilities vs. Vishnu Chemicals Limited |
| LLOYDS METALS vs. Hindustan Construction | LLOYDS METALS vs. Visa Steel Limited | LLOYDS METALS vs. Garuda Construction Engineering | LLOYDS METALS vs. Zenith Steel Pipes |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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