Correlation Between Manaksia Steels and BF Investment
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By analyzing existing cross correlation between Manaksia Steels Limited and BF Investment Limited, you can compare the effects of market volatilities on Manaksia Steels 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 Manaksia Steels with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manaksia Steels and BF Investment.
Diversification Opportunities for Manaksia Steels and BF Investment
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manaksia and BFINVEST is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Manaksia Steels 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 Manaksia Steels 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 Manaksia Steels 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 Manaksia Steels i.e., Manaksia Steels and BF Investment go up and down completely randomly.
Pair Corralation between Manaksia Steels and BF Investment
Assuming the 90 days trading horizon Manaksia Steels Limited is expected to generate 1.27 times more return on investment than BF Investment. However, Manaksia Steels is 1.27 times more volatile than BF Investment Limited. It trades about 0.06 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.06 per unit of risk. If you would invest 4,410 in Manaksia Steels Limited on September 2, 2024 and sell it today you would earn a total of 1,842 from holding Manaksia Steels Limited or generate 41.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manaksia Steels Limited vs. BF Investment Limited
Performance |
| Timeline |
| Manaksia Steels |
| BF Investment Limited |
Manaksia Steels and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manaksia Steels and BF Investment
The main advantage of trading using opposite Manaksia Steels and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manaksia Steels 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.| Manaksia Steels vs. Industrial Investment Trust | Manaksia Steels vs. Varun Beverages Limited | Manaksia Steels vs. AUTHUM INVESTMENT INFRASTRUCTU | Manaksia Steels vs. Osia Hyper Retail |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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