Correlation Between Spencers Retail and BLS International
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By analyzing existing cross correlation between Spencers Retail Limited and BLS International Services, you can compare the effects of market volatilities on Spencers Retail and BLS International 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 BLS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and BLS International.
Diversification Opportunities for Spencers Retail and BLS International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spencers and BLS is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and BLS International Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLS International 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 BLS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLS International has no effect on the direction of Spencers Retail i.e., Spencers Retail and BLS International go up and down completely randomly.
Pair Corralation between Spencers Retail and BLS International
Assuming the 90 days trading horizon Spencers Retail Limited is expected to generate 1.13 times more return on investment than BLS International. However, Spencers Retail is 1.13 times more volatile than BLS International Services. It trades about 0.03 of its potential returns per unit of risk. BLS International Services is currently generating about -0.03 per unit of risk. If you would invest 8,186 in Spencers Retail Limited on October 24, 2024 and sell it today you would earn a total of 88.00 from holding Spencers Retail Limited or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Spencers Retail Limited vs. BLS International Services
Performance |
| Timeline |
| Spencers Retail |
| BLS International |
Spencers Retail and BLS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and BLS International
The main advantage of trading using opposite Spencers Retail and BLS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, BLS International 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 BLS International will offset losses from the drop in BLS International's long position.| Spencers Retail vs. Juniper Hotels | Spencers Retail vs. Advani Hotels Resorts | Spencers Retail vs. Cartrade Tech Limited | Spencers Retail vs. Silgo Retail Limited |
| BLS International vs. FCS Software Solutions | BLS International vs. Mangalore Chemicals Fertilizers | BLS International vs. Golden Tobacco Limited | BLS International vs. Sukhjit Starch Chemicals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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