Correlation Between BF Investment and VIP Clothing
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By analyzing existing cross correlation between BF Investment Limited and VIP Clothing Limited, you can compare the effects of market volatilities on BF Investment and VIP Clothing 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 BF Investment with a short position of VIP Clothing. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Investment and VIP Clothing.
Diversification Opportunities for BF Investment and VIP Clothing
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BFINVEST and VIP is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding BF Investment Limited and VIP Clothing Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIP Clothing Limited and BF Investment 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 BF Investment Limited are associated (or correlated) with VIP Clothing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIP Clothing Limited has no effect on the direction of BF Investment i.e., BF Investment and VIP Clothing go up and down completely randomly.
Pair Corralation between BF Investment and VIP Clothing
Assuming the 90 days trading horizon BF Investment is expected to generate 141.53 times less return on investment than VIP Clothing. But when comparing it to its historical volatility, BF Investment Limited is 2.37 times less risky than VIP Clothing. It trades about 0.0 of its potential returns per unit of risk. VIP Clothing Limited is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,087 in VIP Clothing Limited on September 19, 2024 and sell it today you would earn a total of 627.00 from holding VIP Clothing Limited or generate 15.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BF Investment Limited vs. VIP Clothing Limited
Performance |
Timeline |
BF Investment Limited |
VIP Clothing Limited |
BF Investment and VIP Clothing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BF Investment and VIP Clothing
The main advantage of trading using opposite BF Investment and VIP Clothing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Investment position performs unexpectedly, VIP Clothing 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 VIP Clothing will offset losses from the drop in VIP Clothing's long position.BF Investment vs. MRF Limited | BF Investment vs. JSW Holdings Limited | BF Investment vs. Maharashtra Scooters Limited | BF Investment vs. Nalwa Sons Investments |
VIP Clothing vs. KIOCL Limited | VIP Clothing vs. Spentex Industries Limited | VIP Clothing vs. Punjab Sind Bank | VIP Clothing vs. ITI 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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