Correlation Between Central Bank and Bombay Burmah
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By analyzing existing cross correlation between Central Bank of and Bombay Burmah Trading, you can compare the effects of market volatilities on Central Bank and Bombay Burmah 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 Central Bank with a short position of Bombay Burmah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Bank and Bombay Burmah.
Diversification Opportunities for Central Bank and Bombay Burmah
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Central and Bombay is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Central Bank of and Bombay Burmah Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bombay Burmah Trading and Central Bank 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 Central Bank of are associated (or correlated) with Bombay Burmah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bombay Burmah Trading has no effect on the direction of Central Bank i.e., Central Bank and Bombay Burmah go up and down completely randomly.
Pair Corralation between Central Bank and Bombay Burmah
Assuming the 90 days trading horizon Central Bank is expected to generate 1.25 times less return on investment than Bombay Burmah. But when comparing it to its historical volatility, Central Bank of is 1.07 times less risky than Bombay Burmah. It trades about 0.08 of its potential returns per unit of risk. Bombay Burmah Trading is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 94,902 in Bombay Burmah Trading on September 4, 2024 and sell it today you would earn a total of 144,073 from holding Bombay Burmah Trading or generate 151.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.46% |
| Values | Daily Returns |
Central Bank of vs. Bombay Burmah Trading
Performance |
| Timeline |
| Central Bank |
| Bombay Burmah Trading |
Central Bank and Bombay Burmah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Bank and Bombay Burmah
The main advantage of trading using opposite Central Bank and Bombay Burmah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Bank position performs unexpectedly, Bombay Burmah 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 Bombay Burmah will offset losses from the drop in Bombay Burmah's long position.| Central Bank vs. Baazar Style Retail | Central Bank vs. Cantabil Retail India | Central Bank vs. Hisar Metal Industries | Central Bank vs. Indian Metals Ferro |
| Bombay Burmah vs. JGCHEMICALS LIMITED | Bombay Burmah vs. UTI Asset Management | Bombay Burmah vs. Gujarat Fluorochemicals Limited | Bombay Burmah vs. TECIL Chemicals 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 CEOs Directory module to screen CEOs from public companies around the world.
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