Correlation Between HEG and Bikaji Foods
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By analyzing existing cross correlation between HEG Limited and Bikaji Foods International, you can compare the effects of market volatilities on HEG 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 HEG with a short position of Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEG and Bikaji Foods.
Diversification Opportunities for HEG and Bikaji Foods
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HEG and Bikaji is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding HEG 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 HEG 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 HEG 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 HEG i.e., HEG and Bikaji Foods go up and down completely randomly.
Pair Corralation between HEG and Bikaji Foods
Assuming the 90 days trading horizon HEG Limited is expected to generate 72.65 times more return on investment than Bikaji Foods. However, HEG is 72.65 times more volatile than Bikaji Foods International. It trades about 0.16 of its potential returns per unit of risk. Bikaji Foods International is currently generating about 0.08 per unit of risk. If you would invest 37,192 in HEG Limited on October 25, 2024 and sell it today you would earn a total of 4,428 from holding HEG Limited or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.67% |
| Values | Daily Returns |
HEG Limited vs. Bikaji Foods International
Performance |
| Timeline |
| HEG Limited |
| Bikaji Foods Interna |
HEG and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEG and Bikaji Foods
The main advantage of trading using opposite HEG and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEG 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.| HEG vs. Transport of | HEG vs. DCM Financial Services | HEG vs. V Mart Retail Limited | HEG vs. Silgo Retail Limited |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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