Correlation Between BF Utilities and S P
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By analyzing existing cross correlation between BF Utilities Limited and S P Apparels, you can compare the effects of market volatilities on BF Utilities and S P 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 S P. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and S P.
Diversification Opportunities for BF Utilities and S P
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BFUTILITIE and SPAL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited and S P Apparels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S P Apparels 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 S P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S P Apparels has no effect on the direction of BF Utilities i.e., BF Utilities and S P go up and down completely randomly.
Pair Corralation between BF Utilities and S P
Assuming the 90 days trading horizon BF Utilities Limited is expected to generate 1.16 times more return on investment than S P. However, BF Utilities is 1.16 times more volatile than S P Apparels. It trades about 0.09 of its potential returns per unit of risk. S P Apparels is currently generating about 0.08 per unit of risk. If you would invest 37,040 in BF Utilities Limited on August 31, 2024 and sell it today you would earn a total of 61,575 from holding BF Utilities Limited or generate 166.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
BF Utilities Limited vs. S P Apparels
Performance |
| Timeline |
| BF Utilities Limited |
| S P Apparels |
BF Utilities and S P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Utilities and S P
The main advantage of trading using opposite BF Utilities and S P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities position performs unexpectedly, S P 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 S P will offset losses from the drop in S P's long position.| BF Utilities vs. Reliance Industries Limited | BF Utilities vs. State Bank of | BF Utilities vs. HDFC Bank Limited | BF Utilities vs. Oil Natural Gas |
| S P vs. Kingfa Science Technology | S P vs. GTL Limited | S P vs. Indo Amines Limited | S P vs. HDFC Mutual Fund |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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