Correlation Between Bosch and Bikaji Foods
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By analyzing existing cross correlation between Bosch Limited and Bikaji Foods International, you can compare the effects of market volatilities on Bosch and Bikaji Foods 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 Bosch with a short position of Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch and Bikaji Foods.
Diversification Opportunities for Bosch and Bikaji Foods
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bosch and Bikaji is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Limited and Bikaji Foods International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bikaji Foods Interna and Bosch 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 Bosch Limited are associated (or correlated) with Bikaji Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bikaji Foods Interna has no effect on the direction of Bosch i.e., Bosch and Bikaji Foods go up and down completely randomly.
Pair Corralation between Bosch and Bikaji Foods
Assuming the 90 days trading horizon Bosch Limited is expected to under-perform the Bikaji Foods. But the stock apears to be less risky and, when comparing its historical volatility, Bosch Limited is 1.21 times less risky than Bikaji Foods. The stock trades about -0.45 of its potential returns per unit of risk. The Bikaji Foods International is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 74,835 in Bikaji Foods International on November 4, 2024 and sell it today you would lose (5,735) from holding Bikaji Foods International or give up 7.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosch Limited vs. Bikaji Foods International
Performance |
| Timeline |
| Bosch Limited |
| Bikaji Foods Interna |
Bosch and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch and Bikaji Foods
The main advantage of trading using opposite Bosch and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch position performs unexpectedly, Bikaji Foods 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 Bikaji Foods will offset losses from the drop in Bikaji Foods' long position.| Bosch vs. Industrial Investment Trust | Bosch vs. Iris Clothings Limited | Bosch vs. Dhunseri Investments Limited | Bosch vs. MIC Electronics Limited |
| Bikaji Foods vs. ILFS Investment Managers | Bikaji Foods vs. Bajaj Holdings Investment | Bikaji Foods vs. Max Healthcare Institute | Bikaji Foods vs. Global Health 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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