Correlation Between Industrial Investment and BF Utilities
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By analyzing existing cross correlation between Industrial Investment Trust and BF Utilities Limited, you can compare the effects of market volatilities on Industrial Investment and BF Utilities 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 Industrial Investment with a short position of BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Investment and BF Utilities.
Diversification Opportunities for Industrial Investment and BF Utilities
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Industrial and BFUTILITIE is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Investment Trust and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities Limited and Industrial Investment 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 Industrial Investment Trust are associated (or correlated) with BF Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of Industrial Investment i.e., Industrial Investment and BF Utilities go up and down completely randomly.
Pair Corralation between Industrial Investment and BF Utilities
Assuming the 90 days trading horizon Industrial Investment Trust is expected to generate 0.75 times more return on investment than BF Utilities. However, Industrial Investment Trust is 1.33 times less risky than BF Utilities. It trades about 0.26 of its potential returns per unit of risk. BF Utilities Limited is currently generating about -0.22 per unit of risk. If you would invest 34,435 in Industrial Investment Trust on November 3, 2024 and sell it today you would earn a total of 5,515 from holding Industrial Investment Trust or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Investment Trust vs. BF Utilities Limited
Performance |
| Timeline |
| Industrial Investment |
| BF Utilities Limited |
Industrial Investment and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Investment and BF Utilities
The main advantage of trading using opposite Industrial Investment and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Investment position performs unexpectedly, BF Utilities 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 Utilities will offset losses from the drop in BF Utilities' long position.| Industrial Investment vs. Kingfa Science Technology | Industrial Investment vs. Rico Auto Industries | Industrial Investment vs. GACM Technologies Limited | Industrial Investment vs. COSMO FIRST LIMITED |
| BF Utilities vs. Akme Fintrade India | BF Utilities vs. Cartrade Tech Limited | BF Utilities vs. Nalwa Sons Investments | BF Utilities vs. The Investment Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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