Correlation Between Indian Oil and BF Investment
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By analyzing existing cross correlation between Indian Oil and BF Investment Limited, you can compare the effects of market volatilities on Indian Oil 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 Indian Oil with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Oil and BF Investment.
Diversification Opportunities for Indian Oil and BF Investment
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Indian and BFINVEST is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Indian Oil 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 Indian Oil 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 Indian Oil 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 Indian Oil i.e., Indian Oil and BF Investment go up and down completely randomly.
Pair Corralation between Indian Oil and BF Investment
Assuming the 90 days trading horizon Indian Oil is expected to generate 0.82 times more return on investment than BF Investment. However, Indian Oil is 1.22 times less risky than BF Investment. It trades about 0.14 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.02 per unit of risk. If you would invest 13,870 in Indian Oil on September 13, 2024 and sell it today you would earn a total of 449.00 from holding Indian Oil or generate 3.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Indian Oil vs. BF Investment Limited
Performance |
Timeline |
Indian Oil |
BF Investment Limited |
Indian Oil and BF Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Indian Oil and BF Investment
The main advantage of trading using opposite Indian Oil and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indian Oil 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.Indian Oil vs. Kalyani Investment | Indian Oil vs. Praxis Home Retail | Indian Oil vs. The Investment Trust | Indian Oil vs. Nalwa Sons Investments |
BF Investment vs. MRF Limited | BF Investment vs. JSW Holdings Limited | BF Investment vs. Maharashtra Scooters Limited | BF Investment vs. Nalwa Sons Investments |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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