Correlation Between MRF and Bikaji Foods
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By analyzing existing cross correlation between MRF Limited and Bikaji Foods International, you can compare the effects of market volatilities on MRF and Bikaji Foods 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 Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Bikaji Foods.
Diversification Opportunities for MRF and Bikaji Foods
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MRF and Bikaji is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Bikaji Foods International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bikaji Foods Interna 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 Bikaji Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bikaji Foods Interna has no effect on the direction of MRF i.e., MRF and Bikaji Foods go up and down completely randomly.
Pair Corralation between MRF and Bikaji Foods
Assuming the 90 days trading horizon MRF Limited is expected to under-perform the Bikaji Foods. But the stock apears to be less risky and, when comparing its historical volatility, MRF Limited is 1.81 times less risky than Bikaji Foods. The stock trades about -0.41 of its potential returns per unit of risk. The Bikaji Foods International is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 74,835 in Bikaji Foods International on November 4, 2024 and sell it today you would lose (5,735) from holding Bikaji Foods International or give up 7.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRF Limited vs. Bikaji Foods International
Performance |
| Timeline |
| MRF Limited |
| Bikaji Foods Interna |
MRF and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Bikaji Foods
The main advantage of trading using opposite MRF and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Bikaji Foods 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 Bikaji Foods will offset losses from the drop in Bikaji Foods' long position.| MRF vs. Cantabil Retail India | MRF vs. Central Bank of | MRF vs. Praxis Home Retail | MRF vs. V Mart Retail Limited |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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