Correlation Between BF Utilities and ZF Commercial
Specify exactly 2 symbols:
By analyzing existing cross correlation between BF Utilities Limited and ZF Commercial Vehicle, you can compare the effects of market volatilities on BF Utilities and ZF Commercial 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 ZF Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and ZF Commercial.
Diversification Opportunities for BF Utilities and ZF Commercial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BFUTILITIE and ZFCVINDIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited and ZF Commercial Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZF Commercial Vehicle 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 ZF Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZF Commercial Vehicle has no effect on the direction of BF Utilities i.e., BF Utilities and ZF Commercial go up and down completely randomly.
Pair Corralation between BF Utilities and ZF Commercial
Assuming the 90 days trading horizon BF Utilities Limited is expected to under-perform the ZF Commercial. In addition to that, BF Utilities is 4.16 times more volatile than ZF Commercial Vehicle. It trades about -0.1 of its total potential returns per unit of risk. ZF Commercial Vehicle is currently generating about -0.11 per unit of volatility. If you would invest 1,158,515 in ZF Commercial Vehicle on October 15, 2024 and sell it today you would lose (19,615) from holding ZF Commercial Vehicle or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BF Utilities Limited vs. ZF Commercial Vehicle
Performance |
| Timeline |
| BF Utilities Limited |
| ZF Commercial Vehicle |
BF Utilities and ZF Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BF Utilities and ZF Commercial
The main advantage of trading using opposite BF Utilities and ZF Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities position performs unexpectedly, ZF Commercial 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 ZF Commercial will offset losses from the drop in ZF Commercial's long position.| BF Utilities vs. ADF Foods Limited | BF Utilities vs. Samhi Hotels Limited | BF Utilities vs. Hindustan Foods Limited | BF Utilities vs. Viceroy Hotels Limited |
| ZF Commercial vs. POWERGRID Infrastructure Investment | ZF Commercial vs. Cholamandalam Investment and | ZF Commercial vs. ROUTE MOBILE LIMITED | ZF Commercial vs. Ortel 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |