Correlation Between Baazar Style and BF Utilities
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By analyzing existing cross correlation between Baazar Style Retail and BF Utilities Limited, you can compare the effects of market volatilities on Baazar Style 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 Baazar Style with a short position of BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baazar Style and BF Utilities.
Diversification Opportunities for Baazar Style and BF Utilities
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baazar and BFUTILITIE is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Baazar Style Retail 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 Baazar Style 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 Baazar Style Retail 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 Baazar Style i.e., Baazar Style and BF Utilities go up and down completely randomly.
Pair Corralation between Baazar Style and BF Utilities
Assuming the 90 days trading horizon Baazar Style Retail is expected to under-perform the BF Utilities. But the stock apears to be less risky and, when comparing its historical volatility, Baazar Style Retail is 1.01 times less risky than BF Utilities. The stock trades about -0.08 of its potential returns per unit of risk. The BF Utilities Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 41,850 in BF Utilities Limited on September 24, 2024 and sell it today you would earn a total of 58,600 from holding BF Utilities Limited or generate 140.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 15.54% |
| Values | Daily Returns |
Baazar Style Retail vs. BF Utilities Limited
Performance |
| Timeline |
| Baazar Style Retail |
| BF Utilities Limited |
Baazar Style and BF Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baazar Style and BF Utilities
The main advantage of trading using opposite Baazar Style and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baazar Style 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.| Baazar Style vs. Trent Limited | Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. Summit Securities Limited |
| BF Utilities vs. Baazar Style Retail | BF Utilities vs. Hexa Tradex Limited | BF Utilities vs. Nalwa Sons Investments | BF Utilities vs. Akme Fintrade India |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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