Correlation Between Shipping and BF Investment
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By analyzing existing cross correlation between Shipping and BF Investment Limited, you can compare the effects of market volatilities on Shipping 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 Shipping with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shipping and BF Investment.
Diversification Opportunities for Shipping and BF Investment
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shipping and BFINVEST is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Shipping 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 Shipping 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 Shipping 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 Shipping i.e., Shipping and BF Investment go up and down completely randomly.
Pair Corralation between Shipping and BF Investment
Assuming the 90 days trading horizon Shipping is expected to generate 1.39 times less return on investment than BF Investment. But when comparing it to its historical volatility, Shipping is 1.01 times less risky than BF Investment. It trades about 0.05 of its potential returns per unit of risk. BF Investment Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 29,090 in BF Investment Limited on September 3, 2024 and sell it today you would earn a total of 44,190 from holding BF Investment Limited or generate 151.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Shipping vs. BF Investment Limited
Performance |
| Timeline |
| Shipping |
| BF Investment Limited |
Shipping and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shipping and BF Investment
The main advantage of trading using opposite Shipping and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shipping 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.| Shipping vs. Sintex Plastics Technology | Shipping vs. Shyam Metalics and | Shipping vs. Hilton Metal Forging | Shipping vs. Sonata Software Limited |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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