Correlation Between Bkm Industries and Steel Authority
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By analyzing existing cross correlation between Bkm Industries Limited and Steel Authority of, you can compare the effects of market volatilities on Bkm Industries and Steel Authority 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 Steel Authority. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bkm Industries and Steel Authority.
Diversification Opportunities for Bkm Industries and Steel Authority
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bkm and Steel is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bkm Industries Limited and Steel Authority of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Authority 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 Steel Authority. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Authority has no effect on the direction of Bkm Industries i.e., Bkm Industries and Steel Authority go up and down completely randomly.
Pair Corralation between Bkm Industries and Steel Authority
Assuming the 90 days trading horizon Bkm Industries Limited is expected to generate 20.21 times more return on investment than Steel Authority. However, Bkm Industries is 20.21 times more volatile than Steel Authority of. It trades about 0.06 of its potential returns per unit of risk. Steel Authority of 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 | Insignificant |
| Accuracy | 99.25% |
| Values | Daily Returns |
Bkm Industries Limited vs. Steel Authority of
Performance |
| Timeline |
| Bkm Industries |
| Steel Authority |
Bkm Industries and Steel Authority Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bkm Industries and Steel Authority
The main advantage of trading using opposite Bkm Industries and Steel Authority positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bkm Industries position performs unexpectedly, Steel Authority 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 Steel Authority will offset losses from the drop in Steel Authority'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 |
| Steel Authority vs. NMDC Limited | Steel Authority vs. Embassy Office Parks | Steel Authority vs. Gujarat Narmada Valley | Steel Authority 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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