Correlation Between Embassy Office and Bkm Industries
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By analyzing existing cross correlation between Embassy Office Parks and Bkm Industries Limited, you can compare the effects of market volatilities on Embassy Office and Bkm Industries 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 Embassy Office with a short position of Bkm Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embassy Office and Bkm Industries.
Diversification Opportunities for Embassy Office and Bkm Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Embassy and Bkm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Embassy Office Parks and Bkm Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bkm Industries and Embassy Office 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 Embassy Office Parks are associated (or correlated) with Bkm Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bkm Industries has no effect on the direction of Embassy Office i.e., Embassy Office and Bkm Industries go up and down completely randomly.
Pair Corralation between Embassy Office and Bkm Industries
Assuming the 90 days trading horizon Embassy Office is expected to generate 4.44 times less return on investment than Bkm Industries. But when comparing it to its historical volatility, Embassy Office Parks is 2.79 times less risky than Bkm Industries. It trades about 0.05 of its potential returns per unit of risk. Bkm Industries Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,250 in Bkm Industries Limited on December 11, 2024 and sell it today you would earn a total of 2,250 from holding Bkm Industries Limited or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 72.29% |
| Values | Daily Returns |
Embassy Office Parks vs. Bkm Industries Limited
Performance |
| Timeline |
| Embassy Office Parks |
| Bkm Industries |
Embassy Office and Bkm Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embassy Office and Bkm Industries
The main advantage of trading using opposite Embassy Office and Bkm Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embassy Office position performs unexpectedly, Bkm Industries 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 Bkm Industries will offset losses from the drop in Bkm Industries' long position.| Embassy Office vs. Reliance Industries Limited | Embassy Office vs. Life Insurance | Embassy Office vs. Indian Oil | Embassy Office vs. Oil Natural Gas |
| Bkm Industries vs. Future Retail Limited | Bkm Industries vs. Cantabil Retail India | Bkm Industries vs. Indian Card Clothing | Bkm Industries vs. S P Apparels |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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