Correlation Between Foods Inns and Bajaj Holdings
Specify exactly 2 symbols:
By analyzing existing cross correlation between Foods Inns Limited and Bajaj Holdings Investment, you can compare the effects of market volatilities on Foods Inns and Bajaj Holdings 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 Foods Inns with a short position of Bajaj Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foods Inns and Bajaj Holdings.
Diversification Opportunities for Foods Inns and Bajaj Holdings
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Foods and Bajaj is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Foods Inns Limited and Bajaj Holdings Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bajaj Holdings Investment and Foods Inns 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 Foods Inns Limited are associated (or correlated) with Bajaj Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bajaj Holdings Investment has no effect on the direction of Foods Inns i.e., Foods Inns and Bajaj Holdings go up and down completely randomly.
Pair Corralation between Foods Inns and Bajaj Holdings
Assuming the 90 days trading horizon Foods Inns Limited is expected to generate 1.48 times more return on investment than Bajaj Holdings. However, Foods Inns is 1.48 times more volatile than Bajaj Holdings Investment. It trades about 0.15 of its potential returns per unit of risk. Bajaj Holdings Investment is currently generating about 0.09 per unit of risk. If you would invest 11,456 in Foods Inns Limited on September 15, 2024 and sell it today you would earn a total of 792.00 from holding Foods Inns Limited or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Foods Inns Limited vs. Bajaj Holdings Investment
Performance |
| Timeline |
| Foods Inns Limited |
| Bajaj Holdings Investment |
Foods Inns and Bajaj Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foods Inns and Bajaj Holdings
The main advantage of trading using opposite Foods Inns and Bajaj Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foods Inns position performs unexpectedly, Bajaj Holdings 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 Bajaj Holdings will offset losses from the drop in Bajaj Holdings' long position.| Foods Inns vs. Nestle India Limited | Foods Inns vs. Britannia Industries Limited | Foods Inns vs. TATA SUMER PRODUCTS | Foods Inns vs. Patanjali Foods Limited |
| Bajaj Holdings vs. LT Foods Limited | Bajaj Holdings vs. Patanjali Foods Limited | Bajaj Holdings vs. Foods Inns Limited | Bajaj Holdings vs. Univa Foods 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance |