Correlation Between Selan Exploration and BF Investment
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By analyzing existing cross correlation between Selan Exploration Technology and BF Investment Limited, you can compare the effects of market volatilities on Selan Exploration 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 Selan Exploration with a short position of BF Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selan Exploration and BF Investment.
Diversification Opportunities for Selan Exploration and BF Investment
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Selan and BFINVEST is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Selan Exploration Technology 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 Selan Exploration 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 Selan Exploration Technology 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 Selan Exploration i.e., Selan Exploration and BF Investment go up and down completely randomly.
Pair Corralation between Selan Exploration and BF Investment
Assuming the 90 days trading horizon Selan Exploration Technology is expected to generate 0.79 times more return on investment than BF Investment. However, Selan Exploration Technology is 1.27 times less risky than BF Investment. It trades about 0.01 of its potential returns per unit of risk. BF Investment Limited is currently generating about -0.25 per unit of risk. If you would invest 82,035 in Selan Exploration Technology on October 22, 2024 and sell it today you would earn a total of 75.00 from holding Selan Exploration Technology or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selan Exploration Technology vs. BF Investment Limited
Performance |
| Timeline |
| Selan Exploration |
| BF Investment Limited |
Selan Exploration and BF Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selan Exploration and BF Investment
The main advantage of trading using opposite Selan Exploration and BF Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selan Exploration 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.| Selan Exploration vs. Gujarat Raffia Industries | Selan Exploration vs. Kingfa Science Technology | Selan Exploration vs. Indo Amines Limited | Selan Exploration vs. HDFC Mutual Fund |
| BF Investment vs. Yatra Online Limited | BF Investment vs. KNR Constructions Limited | BF Investment vs. FCS Software Solutions | BF Investment vs. V2 Retail 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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