Correlation Between Cambridge Technology and BF Investment
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By analyzing existing cross correlation between Cambridge Technology Enterprises and BF Investment Limited, you can compare the effects of market volatilities on Cambridge Technology and BF Investment 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 Cambridge Technology with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambridge Technology and BF Investment.
Diversification Opportunities for Cambridge Technology and BF Investment
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cambridge and BFINVEST is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cambridge Technology Enterpris and BF Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Investment Limited and Cambridge Technology 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 Cambridge Technology Enterprises are associated (or correlated) with BF Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Investment Limited has no effect on the direction of Cambridge Technology i.e., Cambridge Technology and BF Investment go up and down completely randomly.
Pair Corralation between Cambridge Technology and BF Investment
Assuming the 90 days trading horizon Cambridge Technology Enterprises is expected to generate 1.31 times more return on investment than BF Investment. However, Cambridge Technology is 1.31 times more volatile than BF Investment Limited. It trades about -0.22 of its potential returns per unit of risk. BF Investment Limited is currently generating about -0.32 per unit of risk. If you would invest 10,386 in Cambridge Technology Enterprises on October 28, 2024 and sell it today you would lose (1,695) from holding Cambridge Technology Enterprises or give up 16.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambridge Technology Enterpris vs. BF Investment Limited
Performance |
| Timeline |
| Cambridge Technology |
| BF Investment Limited |
Cambridge Technology and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambridge Technology and BF Investment
The main advantage of trading using opposite Cambridge Technology and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambridge Technology position performs unexpectedly, BF Investment 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 Investment will offset losses from the drop in BF Investment's long position.| Cambridge Technology vs. Nucleus Software Exports | Cambridge Technology vs. Hathway Cable Datacom | Cambridge Technology vs. Hindustan Construction | Cambridge Technology vs. Indraprastha Medical |
| BF Investment vs. Reliance Industries Limited | BF Investment vs. Life Insurance | BF Investment vs. Indian Oil | BF Investment vs. Oil Natural Gas |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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