Correlation Between Selan Exploration and Bikaji Foods
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By analyzing existing cross correlation between Selan Exploration Technology and Bikaji Foods International, you can compare the effects of market volatilities on Selan Exploration 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 Selan Exploration with a short position of Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selan Exploration and Bikaji Foods.
Diversification Opportunities for Selan Exploration and Bikaji Foods
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Selan and Bikaji is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Selan Exploration Technology 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 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 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 Selan Exploration i.e., Selan Exploration and Bikaji Foods go up and down completely randomly.
Pair Corralation between Selan Exploration and Bikaji Foods
Assuming the 90 days trading horizon Selan Exploration Technology is expected to generate 1.5 times more return on investment than Bikaji Foods. However, Selan Exploration is 1.5 times more volatile than Bikaji Foods International. It trades about -0.21 of its potential returns per unit of risk. Bikaji Foods International is currently generating about -0.47 per unit of risk. If you would invest 88,270 in Selan Exploration Technology on October 16, 2024 and sell it today you would lose (9,575) from holding Selan Exploration Technology or give up 10.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selan Exploration Technology vs. Bikaji Foods International
Performance |
| Timeline |
| Selan Exploration |
| Bikaji Foods Interna |
Selan Exploration and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selan Exploration and Bikaji Foods
The main advantage of trading using opposite Selan Exploration and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selan Exploration 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.| Selan Exploration vs. Digjam Limited | Selan Exploration vs. Gujarat Raffia Industries | Selan Exploration vs. Waaree Energies Limited | Selan Exploration vs. Datamatics Global Services |
| Bikaji Foods vs. Pritish Nandy Communications | Bikaji Foods vs. Tamilnadu Telecommunication Limited | Bikaji Foods vs. Varun Beverages Limited | Bikaji Foods vs. GM Breweries 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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