Correlation Between Patanjali Foods and Bikaji Foods
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By analyzing existing cross correlation between Patanjali Foods Limited and Bikaji Foods International, you can compare the effects of market volatilities on Patanjali Foods 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 Patanjali Foods with a short position of Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patanjali Foods and Bikaji Foods.
Diversification Opportunities for Patanjali Foods and Bikaji Foods
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Patanjali and Bikaji is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Patanjali Foods 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 Patanjali 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 Patanjali Foods 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 Patanjali Foods i.e., Patanjali Foods and Bikaji Foods go up and down completely randomly.
Pair Corralation between Patanjali Foods and Bikaji Foods
Assuming the 90 days trading horizon Patanjali Foods is expected to generate 1.62 times less return on investment than Bikaji Foods. In addition to that, Patanjali Foods is 1.12 times more volatile than Bikaji Foods International. It trades about 0.05 of its total potential returns per unit of risk. Bikaji Foods International is currently generating about 0.09 per unit of volatility. If you would invest 49,845 in Bikaji Foods International on September 1, 2024 and sell it today you would earn a total of 30,425 from holding Bikaji Foods International or generate 61.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patanjali Foods Limited vs. Bikaji Foods International
Performance |
| Timeline |
| Patanjali Foods |
| Bikaji Foods Interna |
Patanjali Foods and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patanjali Foods and Bikaji Foods
The main advantage of trading using opposite Patanjali Foods and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patanjali Foods 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.| Patanjali Foods vs. Rajnandini Metal Limited | Patanjali Foods vs. Hexa Tradex Limited | Patanjali Foods vs. Praxis Home Retail | Patanjali Foods vs. Cantabil Retail India |
| Bikaji Foods vs. Cholamandalam Investment and | Bikaji Foods vs. Styrenix Performance Materials | Bikaji Foods vs. UTI Asset Management | Bikaji Foods vs. Usha Martin Education |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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