Correlation Between MRF and BF Investment
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By analyzing existing cross correlation between MRF Limited and BF Investment Limited, you can compare the effects of market volatilities on MRF 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 MRF with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and BF Investment.
Diversification Opportunities for MRF and BF Investment
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MRF and BFINVEST is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding MRF 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 MRF 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 MRF 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 MRF i.e., MRF and BF Investment go up and down completely randomly.
Pair Corralation between MRF and BF Investment
Assuming the 90 days trading horizon MRF is expected to generate 2.91 times less return on investment than BF Investment. But when comparing it to its historical volatility, MRF Limited is 2.23 times less risky than BF Investment. It trades about 0.05 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 48,880 in BF Investment Limited on September 1, 2024 and sell it today you would earn a total of 24,400 from holding BF Investment Limited or generate 49.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRF Limited vs. BF Investment Limited
Performance |
| Timeline |
| MRF Limited |
| BF Investment Limited |
MRF and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and BF Investment
The main advantage of trading using opposite MRF and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF 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.| MRF vs. Osia Hyper Retail | MRF vs. BF Utilities Limited | MRF vs. Sambhaav Media Limited | MRF vs. Touchwood Entertainment Limited |
| BF Investment vs. Madhav Copper Limited | BF Investment vs. Neogen Chemicals Limited | BF Investment vs. Ratnamani Metals Tubes | BF Investment vs. Tips Music Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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