Correlation Between Bodhi Tree and Diligent Media
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By analyzing existing cross correlation between Bodhi Tree Multimedia and Diligent Media, you can compare the effects of market volatilities on Bodhi Tree and Diligent Media 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 Diligent Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bodhi Tree and Diligent Media.
Diversification Opportunities for Bodhi Tree and Diligent Media
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bodhi and Diligent is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bodhi Tree Multimedia and Diligent Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diligent Media 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 Diligent Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diligent Media has no effect on the direction of Bodhi Tree i.e., Bodhi Tree and Diligent Media go up and down completely randomly.
Pair Corralation between Bodhi Tree and Diligent Media
Assuming the 90 days trading horizon Bodhi Tree is expected to generate 1.62 times less return on investment than Diligent Media. In addition to that, Bodhi Tree is 1.11 times more volatile than Diligent Media. It trades about 0.03 of its total potential returns per unit of risk. Diligent Media is currently generating about 0.06 per unit of volatility. If you would invest 486.00 in Diligent Media on September 2, 2024 and sell it today you would earn a total of 15.00 from holding Diligent Media or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bodhi Tree Multimedia vs. Diligent Media
Performance |
| Timeline |
| Bodhi Tree Multimedia |
| Diligent Media |
Bodhi Tree and Diligent Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bodhi Tree and Diligent Media
The main advantage of trading using opposite Bodhi Tree and Diligent Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bodhi Tree position performs unexpectedly, Diligent Media 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 Diligent Media will offset losses from the drop in Diligent Media's long position.| Bodhi Tree vs. Cantabil Retail India | Bodhi Tree vs. Jaypee Infratech Limited | Bodhi Tree vs. Styrenix Performance Materials | Bodhi Tree vs. Future Retail Limited |
| Diligent Media vs. Reliance Industries Limited | Diligent Media vs. State Bank of | Diligent Media vs. Oil Natural Gas | Diligent Media vs. ICICI Bank 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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