Correlation Between Bodhi Tree and BF Utilities
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By analyzing existing cross correlation between Bodhi Tree Multimedia and BF Utilities Limited, you can compare the effects of market volatilities on Bodhi Tree and BF Utilities 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 Bodhi Tree with a short position of BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bodhi Tree and BF Utilities.
Diversification Opportunities for Bodhi Tree and BF Utilities
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bodhi and BFUTILITIE is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bodhi Tree Multimedia and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities Limited and Bodhi Tree 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 Bodhi Tree Multimedia are associated (or correlated) with BF Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of Bodhi Tree i.e., Bodhi Tree and BF Utilities go up and down completely randomly.
Pair Corralation between Bodhi Tree and BF Utilities
Assuming the 90 days trading horizon Bodhi Tree is expected to generate 2.94 times less return on investment than BF Utilities. But when comparing it to its historical volatility, Bodhi Tree Multimedia is 1.08 times less risky than BF Utilities. It trades about 0.02 of its potential returns per unit of risk. BF Utilities Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 76,490 in BF Utilities Limited on October 18, 2024 and sell it today you would earn a total of 10,380 from holding BF Utilities Limited or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bodhi Tree Multimedia vs. BF Utilities Limited
Performance |
| Timeline |
| Bodhi Tree Multimedia |
| BF Utilities Limited |
Bodhi Tree and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bodhi Tree and BF Utilities
The main advantage of trading using opposite Bodhi Tree and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bodhi Tree position performs unexpectedly, BF Utilities 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 BF Utilities will offset losses from the drop in BF Utilities' long position.| Bodhi Tree vs. Kavveri Telecom Products | Bodhi Tree vs. Tamilnadu Telecommunication Limited | Bodhi Tree vs. Tata Investment | Bodhi Tree vs. Shyam Telecom Limited |
| BF Utilities vs. Rajnandini Metal Limited | BF Utilities vs. Agarwal Industrial | BF Utilities vs. Bodhi Tree Multimedia | BF Utilities vs. Ratnamani Metals Tubes |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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