Correlation Between GM Breweries and Bikaji Foods
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By analyzing existing cross correlation between GM Breweries Limited and Bikaji Foods International, you can compare the effects of market volatilities on GM Breweries and Bikaji Foods 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 GM Breweries with a short position of Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM Breweries and Bikaji Foods.
Diversification Opportunities for GM Breweries and Bikaji Foods
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GMBREW and Bikaji is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding GM Breweries Limited and Bikaji Foods International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bikaji Foods Interna and GM Breweries 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 GM Breweries Limited are associated (or correlated) with Bikaji Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bikaji Foods Interna has no effect on the direction of GM Breweries i.e., GM Breweries and Bikaji Foods go up and down completely randomly.
Pair Corralation between GM Breweries and Bikaji Foods
Assuming the 90 days trading horizon GM Breweries Limited is expected to generate 1.18 times more return on investment than Bikaji Foods. However, GM Breweries is 1.18 times more volatile than Bikaji Foods International. It trades about -0.18 of its potential returns per unit of risk. Bikaji Foods International is currently generating about -0.26 per unit of risk. If you would invest 80,600 in GM Breweries Limited on October 30, 2024 and sell it today you would lose (12,810) from holding GM Breweries Limited or give up 15.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GM Breweries Limited vs. Bikaji Foods International
Performance |
| Timeline |
| GM Breweries Limited |
| Bikaji Foods Interna |
GM Breweries and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM Breweries and Bikaji Foods
The main advantage of trading using opposite GM Breweries and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM Breweries position performs unexpectedly, Bikaji Foods 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 Bikaji Foods will offset losses from the drop in Bikaji Foods' long position.| GM Breweries vs. Plastiblends India Limited | GM Breweries vs. UCO Bank | GM Breweries vs. Credo Brands Marketing | GM Breweries vs. General Insurance |
| Bikaji Foods vs. Gangotri Textiles Limited | Bikaji Foods vs. Hemisphere Properties India | Bikaji Foods vs. Kingfa Science Technology | Bikaji Foods vs. Rico Auto Industries |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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