Correlation Between Bikaji Foods and Gillette India
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By analyzing existing cross correlation between Bikaji Foods International and Gillette India Limited, you can compare the effects of market volatilities on Bikaji Foods and Gillette India 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 Gillette India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and Gillette India.
Diversification Opportunities for Bikaji Foods and Gillette India
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bikaji and Gillette is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and Gillette India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gillette India 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 Gillette India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gillette India has no effect on the direction of Bikaji Foods i.e., Bikaji Foods and Gillette India go up and down completely randomly.
Pair Corralation between Bikaji Foods and Gillette India
Assuming the 90 days trading horizon Bikaji Foods International is expected to under-perform the Gillette India. But the stock apears to be less risky and, when comparing its historical volatility, Bikaji Foods International is 1.45 times less risky than Gillette India. The stock trades about -0.47 of its potential returns per unit of risk. The Gillette India Limited is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 980,260 in Gillette India Limited on October 16, 2024 and sell it today you would lose (31,070) from holding Gillette India Limited or give up 3.17% 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. Gillette India Limited
Performance |
| Timeline |
| Bikaji Foods Interna |
| Gillette India |
Bikaji Foods and Gillette India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bikaji Foods and Gillette India
The main advantage of trading using opposite Bikaji Foods and Gillette India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods position performs unexpectedly, Gillette India 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 Gillette India will offset losses from the drop in Gillette India's long position.| Bikaji Foods vs. Pritish Nandy Communications | Bikaji Foods vs. Tamilnadu Telecommunication Limited | Bikaji Foods vs. Varun Beverages Limited | Bikaji Foods vs. GM Breweries Limited |
| Gillette India vs. ICICI Bank Limited | Gillette India vs. CSB Bank Limited | Gillette India vs. Cantabil Retail India | Gillette India vs. Fedbank Financial Services |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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