Correlation Between Ravi Kumar and BF Investment

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ravi Kumar and BF Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ravi Kumar and BF Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ravi Kumar Distilleries and BF Investment Limited, you can compare the effects of market volatilities on Ravi Kumar 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 Ravi Kumar with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ravi Kumar and BF Investment.

Diversification Opportunities for Ravi Kumar and BF Investment

-0.7
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Ravi and BFINVEST is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ravi Kumar Distilleries 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 Ravi Kumar 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 Ravi Kumar Distilleries 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 Ravi Kumar i.e., Ravi Kumar and BF Investment go up and down completely randomly.

Pair Corralation between Ravi Kumar and BF Investment

Assuming the 90 days trading horizon Ravi Kumar is expected to generate 3.2 times less return on investment than BF Investment. But when comparing it to its historical volatility, Ravi Kumar Distilleries is 1.82 times less risky than BF Investment. It trades about 0.13 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  65,345  in BF Investment Limited on September 3, 2024 and sell it today you would earn a total of  7,935  from holding BF Investment Limited or generate 12.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Ravi Kumar Distilleries  vs.  BF Investment Limited

 Performance 
       Timeline  
Ravi Kumar Distilleries 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ravi Kumar Distilleries has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
BF Investment Limited 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in BF Investment Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, BF Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ravi Kumar and BF Investment Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ravi Kumar and BF Investment

The main advantage of trading using opposite Ravi Kumar and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ravi Kumar 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.
Ravi Kumar vs. BF Investment Limited
Ravi Kumar vs. Palred Technologies Limited
Ravi Kumar vs. The Investment Trust
Ravi Kumar vs. VA Tech Wabag
The idea behind Ravi Kumar Distilleries and BF Investment Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
BF Investment vs. Procter Gamble Health
BF Investment vs. Associated Alcohols Breweries
BF Investment vs. EMBASSY OFFICE PARKS
BF Investment vs. Ratnamani Metals Tubes
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY