Correlation Between Hisar Metal and Bkm Industries
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By analyzing existing cross correlation between Hisar Metal Industries and Bkm Industries Limited, you can compare the effects of market volatilities on Hisar Metal and Bkm Industries 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 Hisar Metal with a short position of Bkm Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hisar Metal and Bkm Industries.
Diversification Opportunities for Hisar Metal and Bkm Industries
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hisar and Bkm is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hisar Metal Industries and Bkm Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bkm Industries and Hisar Metal 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 Hisar Metal Industries are associated (or correlated) with Bkm Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bkm Industries has no effect on the direction of Hisar Metal i.e., Hisar Metal and Bkm Industries go up and down completely randomly.
Pair Corralation between Hisar Metal and Bkm Industries
Assuming the 90 days trading horizon Hisar Metal is expected to generate 16.51 times less return on investment than Bkm Industries. But when comparing it to its historical volatility, Hisar Metal Industries is 13.97 times less risky than Bkm Industries. It trades about 0.04 of its potential returns per unit of risk. Bkm Industries Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 120.00 in Bkm Industries Limited on September 24, 2024 and sell it today you would earn a total of 4,380 from holding Bkm Industries Limited or generate 3650.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.85% |
| Values | Daily Returns |
Hisar Metal Industries vs. Bkm Industries Limited
Performance |
| Timeline |
| Hisar Metal Industries |
| Bkm Industries |
Hisar Metal and Bkm Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hisar Metal and Bkm Industries
The main advantage of trading using opposite Hisar Metal and Bkm Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hisar Metal position performs unexpectedly, Bkm Industries 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 Bkm Industries will offset losses from the drop in Bkm Industries' long position.| Hisar Metal vs. NMDC Limited | Hisar Metal vs. Steel Authority of | Hisar Metal vs. Embassy Office Parks | Hisar Metal vs. Gujarat Narmada Valley |
| Bkm Industries vs. Hisar Metal Industries | Bkm Industries vs. Centum Electronics Limited | Bkm Industries vs. Reliance Industrial Infrastructure | Bkm Industries vs. Metalyst Forgings 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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