Correlation Between Bkm Industries and India Glycols
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By analyzing existing cross correlation between Bkm Industries Limited and India Glycols Limited, you can compare the effects of market volatilities on Bkm Industries and India Glycols 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 India Glycols. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bkm Industries and India Glycols.
Diversification Opportunities for Bkm Industries and India Glycols
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bkm and India is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bkm Industries Limited and India Glycols Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on India Glycols Limited 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 India Glycols. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of India Glycols Limited has no effect on the direction of Bkm Industries i.e., Bkm Industries and India Glycols go up and down completely randomly.
Pair Corralation between Bkm Industries and India Glycols
Assuming the 90 days trading horizon Bkm Industries Limited is expected to generate 21.35 times more return on investment than India Glycols. However, Bkm Industries is 21.35 times more volatile than India Glycols Limited. It trades about 0.06 of its potential returns per unit of risk. India Glycols Limited is currently generating about 0.09 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 Together |
| Strength | Very Weak |
| Accuracy | 99.25% |
| Values | Daily Returns |
Bkm Industries Limited vs. India Glycols Limited
Performance |
| Timeline |
| Bkm Industries |
| India Glycols Limited |
Bkm Industries and India Glycols Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bkm Industries and India Glycols
The main advantage of trading using opposite Bkm Industries and India Glycols positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bkm Industries position performs unexpectedly, India Glycols 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 India Glycols will offset losses from the drop in India Glycols' 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 |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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