Correlation Between Investment Trust and BLB
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By analyzing existing cross correlation between The Investment Trust and BLB Limited, you can compare the effects of market volatilities on Investment Trust and BLB 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 Investment Trust with a short position of BLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and BLB.
Diversification Opportunities for Investment Trust and BLB
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Investment and BLB is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and BLB Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLB Limited and Investment Trust 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 The Investment Trust are associated (or correlated) with BLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLB Limited has no effect on the direction of Investment Trust i.e., Investment Trust and BLB go up and down completely randomly.
Pair Corralation between Investment Trust and BLB
Assuming the 90 days trading horizon The Investment Trust is expected to generate 0.98 times more return on investment than BLB. However, The Investment Trust is 1.02 times less risky than BLB. It trades about 0.07 of its potential returns per unit of risk. BLB Limited is currently generating about -0.01 per unit of risk. If you would invest 7,275 in The Investment Trust on November 28, 2024 and sell it today you would earn a total of 7,901 from holding The Investment Trust or generate 108.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Investment Trust vs. BLB Limited
Performance |
| Timeline |
| Investment Trust |
| BLB Limited |
Investment Trust and BLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and BLB
The main advantage of trading using opposite Investment Trust and BLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust position performs unexpectedly, BLB 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 BLB will offset losses from the drop in BLB's long position.| Investment Trust vs. HDFC Life Insurance | Investment Trust vs. Som Distilleries Breweries | Investment Trust vs. Network18 Media Investments | Investment Trust vs. V Mart Retail Limited |
| BLB vs. Elin Electronics Limited | BLB vs. Navneet Education Limited | BLB vs. Electronics Mart India | BLB vs. MIC Electronics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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