Correlation Between LT Foods and BF Investment
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By analyzing existing cross correlation between LT Foods Limited and BF Investment Limited, you can compare the effects of market volatilities on LT 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 LT Foods with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of LT Foods and BF Investment.
Diversification Opportunities for LT Foods and BF Investment
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LTFOODS and BFINVEST is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding LT 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 LT 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 LT 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 LT Foods i.e., LT Foods and BF Investment go up and down completely randomly.
Pair Corralation between LT Foods and BF Investment
Assuming the 90 days trading horizon LT Foods Limited is expected to generate 1.63 times more return on investment than BF Investment. However, LT Foods is 1.63 times more volatile than BF Investment Limited. It trades about 0.46 of its potential returns per unit of risk. BF Investment Limited is currently generating about -0.04 per unit of risk. If you would invest 35,520 in LT Foods Limited on September 15, 2024 and sell it today you would earn a total of 7,630 from holding LT Foods Limited or generate 21.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LT Foods Limited vs. BF Investment Limited
Performance |
| Timeline |
| LT Foods Limited |
| BF Investment Limited |
LT Foods and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LT Foods and BF Investment
The main advantage of trading using opposite LT Foods and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LT 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.| LT Foods vs. Vidhi Specialty Food | LT Foods vs. GM Breweries Limited | LT Foods vs. Gujarat Lease Financing | LT Foods vs. Bikaji Foods International |
| BF Investment vs. Lakshmi Finance Industrial | BF Investment vs. Foods Inns Limited | BF Investment vs. LT Foods Limited | BF Investment vs. Agarwal Industrial |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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