Correlation Between BLB and Investment Trust
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By analyzing existing cross correlation between BLB Limited and The Investment Trust, you can compare the effects of market volatilities on BLB and Investment Trust 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 BLB with a short position of Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLB and Investment Trust.
Diversification Opportunities for BLB and Investment Trust
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BLB and Investment is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding BLB Limited and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust and BLB 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 BLB Limited are associated (or correlated) with Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of BLB i.e., BLB and Investment Trust go up and down completely randomly.
Pair Corralation between BLB and Investment Trust
Assuming the 90 days trading horizon BLB is expected to generate 40.43 times less return on investment than Investment Trust. But when comparing it to its historical volatility, BLB Limited is 1.21 times less risky than Investment Trust. It trades about 0.0 of its potential returns per unit of risk. The Investment Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 19,463 in The Investment Trust on August 30, 2024 and sell it today you would earn a total of 1,155 from holding The Investment Trust or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BLB Limited vs. The Investment Trust
Performance |
| Timeline |
| BLB Limited |
| Investment Trust |
BLB and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BLB and Investment Trust
The main advantage of trading using opposite BLB and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLB position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| BLB vs. The Investment Trust | BLB vs. Ankit Metal Power | BLB vs. Rajnandini Metal Limited | BLB vs. Pilani Investment and |
| Investment Trust vs. MRF Limited | Investment Trust vs. Bajaj Holdings Investment | Investment Trust vs. Vardhman Holdings Limited | Investment Trust vs. Page Industries 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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