Correlation Between Bkm Industries and NMDC
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By analyzing existing cross correlation between Bkm Industries Limited and NMDC Limited, you can compare the effects of market volatilities on Bkm Industries and NMDC 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 NMDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bkm Industries and NMDC.
Diversification Opportunities for Bkm Industries and NMDC
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bkm and NMDC is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bkm Industries Limited and NMDC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMDC 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 NMDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NMDC Limited has no effect on the direction of Bkm Industries i.e., Bkm Industries and NMDC go up and down completely randomly.
Pair Corralation between Bkm Industries and NMDC
Assuming the 90 days trading horizon Bkm Industries Limited is expected to generate 18.42 times more return on investment than NMDC. However, Bkm Industries is 18.42 times more volatile than NMDC Limited. It trades about 0.35 of its potential returns per unit of risk. NMDC Limited is currently generating about 0.05 per unit of risk. If you would invest 3,575 in Bkm Industries Limited on October 26, 2024 and sell it today you would earn a total of 925.00 from holding Bkm Industries Limited or generate 25.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bkm Industries Limited vs. NMDC Limited
Performance |
| Timeline |
| Bkm Industries |
| NMDC Limited |
Bkm Industries and NMDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bkm Industries and NMDC
The main advantage of trading using opposite Bkm Industries and NMDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bkm Industries position performs unexpectedly, NMDC 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 NMDC will offset losses from the drop in NMDC's long position.| Bkm Industries vs. NMDC Limited | Bkm Industries vs. Steel Authority of | Bkm Industries vs. Embassy Office Parks | Bkm Industries vs. Jai Balaji Industries |
| NMDC vs. Syrma SGS Technology | NMDC vs. Action Construction Equipment | NMDC vs. Salzer Electronics Limited | NMDC vs. Compucom Software 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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