Correlation Between Rico Auto and Bikaji Foods
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By analyzing existing cross correlation between Rico Auto Industries and Bikaji Foods International, you can compare the effects of market volatilities on Rico Auto 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 Rico Auto with a short position of Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rico Auto and Bikaji Foods.
Diversification Opportunities for Rico Auto and Bikaji Foods
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rico and Bikaji is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Rico Auto Industries 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 Rico Auto 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 Rico Auto Industries 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 Rico Auto i.e., Rico Auto and Bikaji Foods go up and down completely randomly.
Pair Corralation between Rico Auto and Bikaji Foods
Assuming the 90 days trading horizon Rico Auto Industries is expected to under-perform the Bikaji Foods. But the stock apears to be less risky and, when comparing its historical volatility, Rico Auto Industries is 1.12 times less risky than Bikaji Foods. The stock trades about -0.14 of its potential returns per unit of risk. The Bikaji Foods International is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 87,800 in Bikaji Foods International on September 12, 2024 and sell it today you would lose (2,670) from holding Bikaji Foods International or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rico Auto Industries vs. Bikaji Foods International
Performance |
| Timeline |
| Rico Auto Industries |
| Bikaji Foods Interna |
Rico Auto and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rico Auto and Bikaji Foods
The main advantage of trading using opposite Rico Auto and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rico Auto 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.| Rico Auto vs. Hemisphere Properties India | Rico Auto vs. Ortel Communications Limited | Rico Auto vs. Garware Hi Tech Films | Rico Auto vs. Apex Frozen Foods |
| Bikaji Foods vs. State Bank of | Bikaji Foods vs. Life Insurance | Bikaji Foods vs. HDFC Bank Limited | Bikaji Foods vs. ICICI Bank 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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