Correlation Between EMBASSY OFFICE and BF Utilities
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By analyzing existing cross correlation between EMBASSY OFFICE PARKS and BF Utilities Limited, you can compare the effects of market volatilities on EMBASSY OFFICE 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 EMBASSY OFFICE with a short position of BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMBASSY OFFICE and BF Utilities.
Diversification Opportunities for EMBASSY OFFICE and BF Utilities
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMBASSY and BFUTILITIE is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding EMBASSY OFFICE PARKS 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 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 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 EMBASSY OFFICE i.e., EMBASSY OFFICE and BF Utilities go up and down completely randomly.
Pair Corralation between EMBASSY OFFICE and BF Utilities
Assuming the 90 days trading horizon EMBASSY OFFICE PARKS is expected to under-perform the BF Utilities. But the stock apears to be less risky and, when comparing its historical volatility, EMBASSY OFFICE PARKS is 2.2 times less risky than BF Utilities. The stock trades about -0.02 of its potential returns per unit of risk. The BF Utilities Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 91,870 in BF Utilities Limited on October 11, 2024 and sell it today you would earn a total of 640.00 from holding BF Utilities Limited or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMBASSY OFFICE PARKS vs. BF Utilities Limited
Performance |
| Timeline |
| EMBASSY OFFICE PARKS |
| BF Utilities Limited |
EMBASSY OFFICE and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMBASSY OFFICE and BF Utilities
The main advantage of trading using opposite EMBASSY OFFICE and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMBASSY OFFICE 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.| EMBASSY OFFICE vs. Tamilnadu Telecommunication Limited | EMBASSY OFFICE vs. Ortel Communications Limited | EMBASSY OFFICE vs. SAL Steel Limited | EMBASSY OFFICE vs. STEEL EXCHANGE INDIA |
| BF Utilities vs. EMBASSY OFFICE PARKS | BF Utilities vs. Indian Card Clothing | BF Utilities vs. Dev Information Technology | BF Utilities vs. Neogen Chemicals 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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