Correlation Between Spencers Retail and Bodhi Tree
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By analyzing existing cross correlation between Spencers Retail Limited and Bodhi Tree Multimedia, you can compare the effects of market volatilities on Spencers Retail and Bodhi Tree 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 Bodhi Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spencers Retail and Bodhi Tree.
Diversification Opportunities for Spencers Retail and Bodhi Tree
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spencers and Bodhi is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Spencers Retail Limited and Bodhi Tree Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bodhi Tree Multimedia 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 Bodhi Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bodhi Tree Multimedia has no effect on the direction of Spencers Retail i.e., Spencers Retail and Bodhi Tree go up and down completely randomly.
Pair Corralation between Spencers Retail and Bodhi Tree
Assuming the 90 days trading horizon Spencers Retail Limited is expected to under-perform the Bodhi Tree. But the stock apears to be less risky and, when comparing its historical volatility, Spencers Retail Limited is 1.42 times less risky than Bodhi Tree. The stock trades about -0.04 of its potential returns per unit of risk. The Bodhi Tree Multimedia is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,168 in Bodhi Tree Multimedia on October 11, 2024 and sell it today you would earn a total of 116.00 from holding Bodhi Tree Multimedia or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spencers Retail Limited vs. Bodhi Tree Multimedia
Performance |
| Timeline |
| Spencers Retail |
| Bodhi Tree Multimedia |
Spencers Retail and Bodhi Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spencers Retail and Bodhi Tree
The main advantage of trading using opposite Spencers Retail and Bodhi Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spencers Retail position performs unexpectedly, Bodhi Tree 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 Bodhi Tree will offset losses from the drop in Bodhi Tree's long position.| Spencers Retail vs. Home First Finance | Spencers Retail vs. Data Patterns Limited | Spencers Retail vs. Garware Hi Tech Films | Spencers Retail vs. Golden Tobacco Limited |
| Bodhi Tree vs. Cantabil Retail India | Bodhi Tree vs. Manaksia Coated Metals | Bodhi Tree vs. MIC Electronics Limited | Bodhi Tree vs. Reliance Industrial Infrastructure |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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