Correlation Between Bkm Industries and Gujarat Narmada
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By analyzing existing cross correlation between Bkm Industries Limited and Gujarat Narmada Valley, you can compare the effects of market volatilities on Bkm Industries and Gujarat Narmada 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 Gujarat Narmada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bkm Industries and Gujarat Narmada.
Diversification Opportunities for Bkm Industries and Gujarat Narmada
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bkm and Gujarat is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bkm Industries Limited and Gujarat Narmada Valley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gujarat Narmada Valley 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 Gujarat Narmada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gujarat Narmada Valley has no effect on the direction of Bkm Industries i.e., Bkm Industries and Gujarat Narmada go up and down completely randomly.
Pair Corralation between Bkm Industries and Gujarat Narmada
Assuming the 90 days trading horizon Bkm Industries Limited is expected to generate 28.82 times more return on investment than Gujarat Narmada. However, Bkm Industries is 28.82 times more volatile than Gujarat Narmada Valley. It trades about 0.06 of its potential returns per unit of risk. Gujarat Narmada Valley is currently generating about -0.01 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 | Insignificant |
| Accuracy | 99.25% |
| Values | Daily Returns |
Bkm Industries Limited vs. Gujarat Narmada Valley
Performance |
| Timeline |
| Bkm Industries |
| Gujarat Narmada Valley |
Bkm Industries and Gujarat Narmada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bkm Industries and Gujarat Narmada
The main advantage of trading using opposite Bkm Industries and Gujarat Narmada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bkm Industries position performs unexpectedly, Gujarat Narmada 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 Gujarat Narmada will offset losses from the drop in Gujarat Narmada'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 |
| Gujarat Narmada vs. NMDC Limited | Gujarat Narmada vs. Steel Authority of | Gujarat Narmada vs. Embassy Office Parks | Gujarat Narmada vs. Gujarat Alkalies and |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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