Correlation Between Gujarat Raffia and BF Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gujarat Raffia Industries and BF Investment Limited, you can compare the effects of market volatilities on Gujarat Raffia 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 Gujarat Raffia with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gujarat Raffia and BF Investment.
Diversification Opportunities for Gujarat Raffia and BF Investment
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gujarat and BFINVEST is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gujarat Raffia Industries 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 Gujarat Raffia 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 Gujarat Raffia Industries 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 Gujarat Raffia i.e., Gujarat Raffia and BF Investment go up and down completely randomly.
Pair Corralation between Gujarat Raffia and BF Investment
Assuming the 90 days trading horizon Gujarat Raffia is expected to generate 1.78 times less return on investment than BF Investment. But when comparing it to its historical volatility, Gujarat Raffia Industries is 1.1 times less risky than BF Investment. It trades about 0.1 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 65,660 in BF Investment Limited on August 29, 2024 and sell it today you would earn a total of 6,340 from holding BF Investment Limited or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gujarat Raffia Industries vs. BF Investment Limited
Performance |
| Timeline |
| Gujarat Raffia Industries |
| BF Investment Limited |
Gujarat Raffia and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gujarat Raffia and BF Investment
The main advantage of trading using opposite Gujarat Raffia and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gujarat Raffia 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.| Gujarat Raffia vs. India Glycols Limited | Gujarat Raffia vs. Indo Borax Chemicals | Gujarat Raffia vs. Kingfa Science Technology | Gujarat Raffia vs. Alkali Metals Limited |
| BF Investment vs. MRF Limited | BF Investment vs. Nalwa Sons Investments | BF Investment vs. Kalyani Investment | BF Investment vs. Pilani Investment and |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |