Correlation Between Bikaji Foods and Mahindra Logistics
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By analyzing existing cross correlation between Bikaji Foods International and Mahindra Logistics Limited, you can compare the effects of market volatilities on Bikaji Foods and Mahindra Logistics 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 Mahindra Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and Mahindra Logistics.
Diversification Opportunities for Bikaji Foods and Mahindra Logistics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bikaji and Mahindra is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and Mahindra Logistics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahindra Logistics 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 Mahindra Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahindra Logistics has no effect on the direction of Bikaji Foods i.e., Bikaji Foods and Mahindra Logistics go up and down completely randomly.
Pair Corralation between Bikaji Foods and Mahindra Logistics
Assuming the 90 days trading horizon Bikaji Foods International is expected to generate 1.13 times more return on investment than Mahindra Logistics. However, Bikaji Foods is 1.13 times more volatile than Mahindra Logistics Limited. It trades about 0.09 of its potential returns per unit of risk. Mahindra Logistics Limited is currently generating about -0.03 per unit of risk. If you would invest 63,551 in Bikaji Foods International on September 3, 2024 and sell it today you would earn a total of 16,719 from holding Bikaji Foods International or generate 26.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bikaji Foods International vs. Mahindra Logistics Limited
Performance |
| Timeline |
| Bikaji Foods Interna |
| Mahindra Logistics |
Bikaji Foods and Mahindra Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bikaji Foods and Mahindra Logistics
The main advantage of trading using opposite Bikaji Foods and Mahindra Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods position performs unexpectedly, Mahindra Logistics 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 Mahindra Logistics will offset losses from the drop in Mahindra Logistics' long position.| Bikaji Foods vs. Tata Consultancy Services | Bikaji Foods vs. Quess Corp Limited | Bikaji Foods vs. Reliance Industries Limited | Bikaji Foods vs. Infosys Limited |
| Mahindra Logistics vs. Prakash Steelage Limited | Mahindra Logistics vs. Manaksia Steels Limited | Mahindra Logistics vs. Bikaji Foods International | Mahindra Logistics vs. Steel Authority of |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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