Correlation Between KNR Constructions and BF Investment
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By analyzing existing cross correlation between KNR Constructions Limited and BF Investment Limited, you can compare the effects of market volatilities on KNR Constructions 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 KNR Constructions with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of KNR Constructions and BF Investment.
Diversification Opportunities for KNR Constructions and BF Investment
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KNR and BFINVEST is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding KNR Constructions Limited 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 KNR Constructions 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 KNR Constructions Limited 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 KNR Constructions i.e., KNR Constructions and BF Investment go up and down completely randomly.
Pair Corralation between KNR Constructions and BF Investment
Assuming the 90 days trading horizon KNR Constructions Limited is expected to generate 0.96 times more return on investment than BF Investment. However, KNR Constructions Limited is 1.04 times less risky than BF Investment. It trades about 0.21 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.17 per unit of risk. If you would invest 28,675 in KNR Constructions Limited on August 29, 2024 and sell it today you would earn a total of 3,450 from holding KNR Constructions Limited or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KNR Constructions Limited vs. BF Investment Limited
Performance |
| Timeline |
| KNR Constructions |
| BF Investment Limited |
KNR Constructions and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KNR Constructions and BF Investment
The main advantage of trading using opposite KNR Constructions and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KNR Constructions 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.| KNR Constructions vs. Reliance Industries Limited | KNR Constructions vs. State Bank of | KNR Constructions vs. HDFC Bank Limited | KNR Constructions vs. Oil Natural Gas |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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