Correlation Between Bikaji Foods and Advani Hotels
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By analyzing existing cross correlation between Bikaji Foods International and Advani Hotels Resorts, you can compare the effects of market volatilities on Bikaji Foods and Advani Hotels 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 Bikaji Foods with a short position of Advani Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and Advani Hotels.
Diversification Opportunities for Bikaji Foods and Advani Hotels
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bikaji and Advani is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and Advani Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advani Hotels Resorts and Bikaji Foods 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 Bikaji Foods International are associated (or correlated) with Advani Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advani Hotels Resorts has no effect on the direction of Bikaji Foods i.e., Bikaji Foods and Advani Hotels go up and down completely randomly.
Pair Corralation between Bikaji Foods and Advani Hotels
Assuming the 90 days trading horizon Bikaji Foods is expected to generate 2.26 times less return on investment than Advani Hotels. But when comparing it to its historical volatility, Bikaji Foods International is 3.85 times less risky than Advani Hotels. It trades about 0.08 of its potential returns per unit of risk. Advani Hotels Resorts is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,923 in Advani Hotels Resorts on September 2, 2024 and sell it today you would earn a total of 3,185 from holding Advani Hotels Resorts or generate 81.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Bikaji Foods International vs. Advani Hotels Resorts
Performance |
| Timeline |
| Bikaji Foods Interna |
| Advani Hotels Resorts |
Bikaji Foods and Advani Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bikaji Foods and Advani Hotels
The main advantage of trading using opposite Bikaji Foods and Advani Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods position performs unexpectedly, Advani Hotels 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 Advani Hotels will offset losses from the drop in Advani Hotels' long position.| Bikaji Foods vs. Advani Hotels Resorts | Bikaji Foods vs. Sapphire Foods India | Bikaji Foods vs. Juniper Hotels | Bikaji Foods vs. Asian Hotels Limited |
| Advani Hotels vs. Procter Gamble Health | Advani Hotels vs. Healthcare Global Enterprises | Advani Hotels vs. R S Software | Advani Hotels vs. Rajnandini Metal 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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