Correlation Between Kohinoor Foods and BF Investment
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By analyzing existing cross correlation between Kohinoor Foods Limited and BF Investment Limited, you can compare the effects of market volatilities on Kohinoor Foods 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 Kohinoor Foods with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohinoor Foods and BF Investment.
Diversification Opportunities for Kohinoor Foods and BF Investment
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kohinoor and BFINVEST is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Kohinoor Foods 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 Kohinoor Foods 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 Kohinoor Foods 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 Kohinoor Foods i.e., Kohinoor Foods and BF Investment go up and down completely randomly.
Pair Corralation between Kohinoor Foods and BF Investment
Assuming the 90 days trading horizon Kohinoor Foods Limited is expected to under-perform the BF Investment. In addition to that, Kohinoor Foods is 1.14 times more volatile than BF Investment Limited. It trades about -0.01 of its total potential returns per unit of risk. BF Investment Limited is currently generating about 0.06 per unit of volatility. If you would invest 51,970 in BF Investment Limited on September 2, 2024 and sell it today you would earn a total of 21,310 from holding BF Investment Limited or generate 41.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kohinoor Foods Limited vs. BF Investment Limited
Performance |
| Timeline |
| Kohinoor Foods |
| BF Investment Limited |
Kohinoor Foods and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohinoor Foods and BF Investment
The main advantage of trading using opposite Kohinoor Foods and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohinoor Foods 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.| Kohinoor Foods vs. Asian Hotels Limited | Kohinoor Foods vs. Blue Coast Hotels | Kohinoor Foods vs. Associated Alcohols Breweries | Kohinoor Foods vs. VIP Clothing Limited |
| BF Investment vs. Sonata Software Limited | BF Investment vs. GM Breweries Limited | BF Investment vs. California Software | BF Investment vs. STEEL EXCHANGE INDIA |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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