Correlation Between Spencers Retail and Bikaji Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Spencers Retail Limited and Bikaji Foods International, you can compare the effects of market volatilities on Spencers Retail 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 Spencers Retail with a short position of Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and Bikaji Foods.
Diversification Opportunities for Spencers Retail and Bikaji Foods
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spencers and Bikaji is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited 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 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 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 Spencers Retail i.e., Spencers Retail and Bikaji Foods go up and down completely randomly.
Pair Corralation between Spencers Retail and Bikaji Foods
Assuming the 90 days trading horizon Spencers Retail Limited is expected to under-perform the Bikaji Foods. But the stock apears to be less risky and, when comparing its historical volatility, Spencers Retail Limited is 1.08 times less risky than Bikaji Foods. The stock trades about -0.2 of its potential returns per unit of risk. The Bikaji Foods International is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 84,990 in Bikaji Foods International on September 1, 2024 and sell it today you would lose (4,720) from holding Bikaji Foods International or give up 5.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. Bikaji Foods International
Performance |
| Timeline |
| Spencers Retail |
| Bikaji Foods Interna |
Spencers Retail and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and Bikaji Foods
The main advantage of trading using opposite Spencers Retail and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail 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.| Spencers Retail vs. Avonmore Capital Management | Spencers Retail vs. Computer Age Management | Spencers Retail vs. Reliance Communications Limited | Spencers Retail vs. Bikaji Foods International |
| Bikaji Foods vs. Cholamandalam Investment and | Bikaji Foods vs. Styrenix Performance Materials | Bikaji Foods vs. UTI Asset Management | Bikaji Foods vs. Usha Martin Education |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |