Correlation Between Bikaji Foods and Tree House
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By analyzing existing cross correlation between Bikaji Foods International and Tree House Education, you can compare the effects of market volatilities on Bikaji Foods and Tree House 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 Tree House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and Tree House.
Diversification Opportunities for Bikaji Foods and Tree House
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bikaji and Tree is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and Tree House Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tree House Education 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 Tree House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tree House Education has no effect on the direction of Bikaji Foods i.e., Bikaji Foods and Tree House go up and down completely randomly.
Pair Corralation between Bikaji Foods and Tree House
Assuming the 90 days trading horizon Bikaji Foods International is expected to generate 1.68 times more return on investment than Tree House. However, Bikaji Foods is 1.68 times more volatile than Tree House Education. It trades about -0.11 of its potential returns per unit of risk. Tree House Education is currently generating about -0.26 per unit of risk. If you would invest 84,990 in Bikaji Foods International on September 1, 2024 and sell it today you would lose (4,720) from holding Bikaji Foods International or give up 5.55% 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. Tree House Education
Performance |
| Timeline |
| Bikaji Foods Interna |
| Tree House Education |
Bikaji Foods and Tree House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bikaji Foods and Tree House
The main advantage of trading using opposite Bikaji Foods and Tree House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods position performs unexpectedly, Tree House 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 Tree House will offset losses from the drop in Tree House's long position.| Bikaji Foods vs. Cholamandalam Investment and | Bikaji Foods vs. Styrenix Performance Materials | Bikaji Foods vs. UTI Asset Management | Bikaji Foods vs. Usha Martin Education |
| Tree House vs. The Indian Hotels | Tree House vs. Samhi Hotels Limited | Tree House vs. Juniper Hotels | Tree House vs. Royal Orchid Hotels |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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