Correlation Between BF Utilities and UCO Bank
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By analyzing existing cross correlation between BF Utilities Limited and UCO Bank, you can compare the effects of market volatilities on BF Utilities and UCO Bank 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 UCO Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and UCO Bank.
Diversification Opportunities for BF Utilities and UCO Bank
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between BFUTILITIE and UCO is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited and UCO Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCO Bank 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 UCO Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCO Bank has no effect on the direction of BF Utilities i.e., BF Utilities and UCO Bank go up and down completely randomly.
Pair Corralation between BF Utilities and UCO Bank
Assuming the 90 days trading horizon BF Utilities Limited is expected to generate 1.11 times more return on investment than UCO Bank. However, BF Utilities is 1.11 times more volatile than UCO Bank. It trades about 0.07 of its potential returns per unit of risk. UCO Bank is currently generating about 0.04 per unit of risk. If you would invest 41,850 in BF Utilities Limited on September 24, 2024 and sell it today you would earn a total of 58,600 from holding BF Utilities Limited or generate 140.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
BF Utilities Limited vs. UCO Bank
Performance |
| Timeline |
| BF Utilities Limited |
| UCO Bank |
BF Utilities and UCO Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Utilities and UCO Bank
The main advantage of trading using opposite BF Utilities and UCO Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities position performs unexpectedly, UCO Bank 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 UCO Bank will offset losses from the drop in UCO Bank's long position.| BF Utilities vs. Baazar Style Retail | BF Utilities vs. Hexa Tradex Limited | BF Utilities vs. Nalwa Sons Investments | BF Utilities vs. Akme Fintrade India |
| UCO Bank vs. Kingfa Science Technology | UCO Bank vs. Rico Auto Industries | UCO Bank vs. GACM Technologies Limited | UCO Bank vs. COSMO FIRST 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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