Correlation Between Lotus Eye and BF Investment
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By analyzing existing cross correlation between Lotus Eye Hospital and BF Investment Limited, you can compare the effects of market volatilities on Lotus Eye 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 Lotus Eye with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotus Eye and BF Investment.
Diversification Opportunities for Lotus Eye and BF Investment
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lotus and BFINVEST is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lotus Eye Hospital 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 Lotus Eye 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 Lotus Eye Hospital 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 Lotus Eye i.e., Lotus Eye and BF Investment go up and down completely randomly.
Pair Corralation between Lotus Eye and BF Investment
Assuming the 90 days trading horizon Lotus Eye Hospital is expected to under-perform the BF Investment. In addition to that, Lotus Eye is 1.26 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 0.05 per unit of volatility. If you would invest 55,335 in BF Investment Limited on September 14, 2024 and sell it today you would earn a total of 16,395 from holding BF Investment Limited or generate 29.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.25% |
| Values | Daily Returns |
Lotus Eye Hospital vs. BF Investment Limited
Performance |
| Timeline |
| Lotus Eye Hospital |
| BF Investment Limited |
Lotus Eye and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotus Eye and BF Investment
The main advantage of trading using opposite Lotus Eye and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotus Eye 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.| Lotus Eye vs. Reliance Industries Limited | Lotus Eye vs. Oil Natural Gas | Lotus Eye vs. ICICI Bank Limited | Lotus Eye vs. Bharti Airtel Limited |
| BF Investment vs. Lotus Eye Hospital | BF Investment vs. Medplus Health Services | BF Investment vs. Credo Brands Marketing | BF Investment vs. Akme Fintrade 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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