Correlation Between Bikaji Foods and BF Utilities
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By analyzing existing cross correlation between Bikaji Foods International and BF Utilities Limited, you can compare the effects of market volatilities on Bikaji Foods and BF Utilities 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 BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and BF Utilities.
Diversification Opportunities for Bikaji Foods and BF Utilities
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bikaji and BFUTILITIE is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities Limited 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 BF Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of Bikaji Foods i.e., Bikaji Foods and BF Utilities go up and down completely randomly.
Pair Corralation between Bikaji Foods and BF Utilities
Assuming the 90 days trading horizon Bikaji Foods International is expected to generate 0.63 times more return on investment than BF Utilities. However, Bikaji Foods International is 1.58 times less risky than BF Utilities. It trades about -0.11 of its potential returns per unit of risk. BF Utilities Limited is currently generating about -0.25 per unit of risk. If you would invest 72,810 in Bikaji Foods International on November 5, 2024 and sell it today you would lose (3,710) from holding Bikaji Foods International or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bikaji Foods International vs. BF Utilities Limited
Performance |
| Timeline |
| Bikaji Foods Interna |
| BF Utilities Limited |
Bikaji Foods and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bikaji Foods and BF Utilities
The main advantage of trading using opposite Bikaji Foods and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods position performs unexpectedly, BF Utilities 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 BF Utilities will offset losses from the drop in BF Utilities' long position.| Bikaji Foods vs. ILFS Investment Managers | Bikaji Foods vs. Bajaj Holdings Investment | Bikaji Foods vs. Max Healthcare Institute | Bikaji Foods vs. Global Health Limited |
| BF Utilities vs. OnMobile Global Limited | BF Utilities vs. Navneet Education Limited | BF Utilities vs. Tata Communications Limited | BF Utilities 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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