Correlation Between Spencers Retail and BF Utilities
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By analyzing existing cross correlation between Spencers Retail Limited and BF Utilities Limited, you can compare the effects of market volatilities on Spencers Retail and BF Utilities 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 Spencers Retail with a short position of BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and BF Utilities.
Diversification Opportunities for Spencers Retail and BF Utilities
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spencers and BFUTILITIE is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities Limited and Spencers Retail 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 Spencers Retail Limited are associated (or correlated) with BF Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of Spencers Retail i.e., Spencers Retail and BF Utilities go up and down completely randomly.
Pair Corralation between Spencers Retail and BF Utilities
Assuming the 90 days trading horizon Spencers Retail Limited is expected to under-perform the BF Utilities. In addition to that, Spencers Retail is 1.13 times more volatile than BF Utilities Limited. It trades about -0.2 of its total potential returns per unit of risk. BF Utilities Limited is currently generating about 0.38 per unit of volatility. If you would invest 85,115 in BF Utilities Limited on September 1, 2024 and sell it today you would earn a total of 13,500 from holding BF Utilities Limited or generate 15.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. BF Utilities Limited
Performance |
| Timeline |
| Spencers Retail |
| BF Utilities Limited |
Spencers Retail and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and BF Utilities
The main advantage of trading using opposite Spencers Retail and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, BF Utilities 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 Utilities will offset losses from the drop in BF Utilities' long position.| Spencers Retail vs. Avonmore Capital Management | Spencers Retail vs. Computer Age Management | Spencers Retail vs. Reliance Communications Limited | Spencers Retail vs. Bikaji Foods International |
| BF Utilities vs. Spencers Retail Limited | BF Utilities vs. Shree Pushkar Chemicals | BF Utilities vs. Indraprastha Medical | BF Utilities vs. Vishnu Chemicals 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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