Correlation Between MRF and Blue Jet
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By analyzing existing cross correlation between MRF Limited and Blue Jet Healthcare, you can compare the effects of market volatilities on MRF and Blue Jet 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 Blue Jet. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Blue Jet.
Diversification Opportunities for MRF and Blue Jet
Excellent diversification
The 3 months correlation between MRF and Blue is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Blue Jet Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Jet Healthcare 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 Blue Jet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Jet Healthcare has no effect on the direction of MRF i.e., MRF and Blue Jet go up and down completely randomly.
Pair Corralation between MRF and Blue Jet
Assuming the 90 days trading horizon MRF Limited is expected to under-perform the Blue Jet. But the stock apears to be less risky and, when comparing its historical volatility, MRF Limited is 2.72 times less risky than Blue Jet. The stock trades about -0.12 of its potential returns per unit of risk. The Blue Jet Healthcare is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 47,474 in Blue Jet Healthcare on November 7, 2024 and sell it today you would earn a total of 32,986 from holding Blue Jet Healthcare or generate 69.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
MRF Limited vs. Blue Jet Healthcare
Performance |
| Timeline |
| MRF Limited |
| Blue Jet Healthcare |
MRF and Blue Jet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Blue Jet
The main advantage of trading using opposite MRF and Blue Jet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Blue Jet 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 Blue Jet will offset losses from the drop in Blue Jet's long position.| MRF vs. Tera Software Limited | MRF vs. Cambridge Technology Enterprises | MRF vs. Sonata Software Limited | MRF vs. Shyam Metalics and |
| Blue Jet vs. Associated Alcohols Breweries | Blue Jet vs. Tata Investment | Blue Jet vs. Ravi Kumar Distilleries | Blue Jet vs. Industrial Investment Trust |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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