Correlation Between Bikaji Foods and General Insurance
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By analyzing existing cross correlation between Bikaji Foods International and General Insurance, you can compare the effects of market volatilities on Bikaji Foods and General Insurance 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 General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and General Insurance.
Diversification Opportunities for Bikaji Foods and General Insurance
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bikaji and General is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance 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 General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of Bikaji Foods i.e., Bikaji Foods and General Insurance go up and down completely randomly.
Pair Corralation between Bikaji Foods and General Insurance
Assuming the 90 days trading horizon Bikaji Foods International is expected to under-perform the General Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Bikaji Foods International is 1.76 times less risky than General Insurance. The stock trades about -0.11 of its potential returns per unit of risk. The General Insurance is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 43,505 in General Insurance on November 7, 2024 and sell it today you would lose (2,360) from holding General Insurance or give up 5.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bikaji Foods International vs. General Insurance
Performance |
| Timeline |
| Bikaji Foods Interna |
| General Insurance |
Bikaji Foods and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bikaji Foods and General Insurance
The main advantage of trading using opposite Bikaji Foods and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods position performs unexpectedly, General Insurance 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 General Insurance will offset losses from the drop in General Insurance's long position.| Bikaji Foods vs. Reliance Industries Limited | Bikaji Foods vs. Tata Motors Limited | Bikaji Foods vs. Oil Natural Gas | Bikaji Foods vs. HCL Technologies Limited |
| General Insurance vs. Hindcon Chemicals Limited | General Insurance vs. V2 Retail Limited | General Insurance vs. Praxis Home Retail | General Insurance vs. DMCC SPECIALITY CHEMICALS |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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