Correlation Between Bkm Industries and Embassy Office
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By analyzing existing cross correlation between Bkm Industries Limited and Embassy Office Parks, you can compare the effects of market volatilities on Bkm Industries and Embassy Office 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 Bkm Industries with a short position of Embassy Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bkm Industries and Embassy Office.
Diversification Opportunities for Bkm Industries and Embassy Office
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bkm and Embassy is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bkm Industries Limited and Embassy Office Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embassy Office Parks and Bkm Industries 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 Bkm Industries Limited are associated (or correlated) with Embassy Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embassy Office Parks has no effect on the direction of Bkm Industries i.e., Bkm Industries and Embassy Office go up and down completely randomly.
Pair Corralation between Bkm Industries and Embassy Office
Assuming the 90 days trading horizon Bkm Industries Limited is expected to generate 44.56 times more return on investment than Embassy Office. However, Bkm Industries is 44.56 times more volatile than Embassy Office Parks. It trades about 0.06 of its potential returns per unit of risk. Embassy Office Parks is currently generating about 0.05 per unit of risk. If you would invest 155.00 in Bkm Industries Limited on September 23, 2024 and sell it today you would earn a total of 4,345 from holding Bkm Industries Limited or generate 2803.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.77% |
| Values | Daily Returns |
Bkm Industries Limited vs. Embassy Office Parks
Performance |
| Timeline |
| Bkm Industries |
| Embassy Office Parks |
Bkm Industries and Embassy Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bkm Industries and Embassy Office
The main advantage of trading using opposite Bkm Industries and Embassy Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bkm Industries position performs unexpectedly, Embassy Office 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 Embassy Office will offset losses from the drop in Embassy Office's long position.| Bkm Industries vs. NMDC Limited | Bkm Industries vs. Steel Authority of | Bkm Industries vs. Embassy Office Parks | Bkm Industries vs. Gujarat Narmada Valley |
| Embassy Office vs. Indian Railway Finance | Embassy Office vs. Cholamandalam Financial Holdings | Embassy Office vs. Tata Consultancy Services | Embassy Office vs. Piramal Enterprises 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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