Correlation Between BF Utilities and COSMO FIRST
Specify exactly 2 symbols:
By analyzing existing cross correlation between BF Utilities Limited and COSMO FIRST LIMITED, you can compare the effects of market volatilities on BF Utilities and COSMO FIRST 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 Utilities with a short position of COSMO FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of BF Utilities and COSMO FIRST.
Diversification Opportunities for BF Utilities and COSMO FIRST
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BFUTILITIE and COSMO is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding BF Utilities Limited and COSMO FIRST LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMO FIRST LIMITED and BF Utilities 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 Utilities Limited are associated (or correlated) with COSMO FIRST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMO FIRST LIMITED has no effect on the direction of BF Utilities i.e., BF Utilities and COSMO FIRST go up and down completely randomly.
Pair Corralation between BF Utilities and COSMO FIRST
Assuming the 90 days trading horizon BF Utilities is expected to generate 3.22 times less return on investment than COSMO FIRST. But when comparing it to its historical volatility, BF Utilities Limited is 1.64 times less risky than COSMO FIRST. It trades about 0.08 of its potential returns per unit of risk. COSMO FIRST LIMITED is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 85,070 in COSMO FIRST LIMITED on October 5, 2024 and sell it today you would earn a total of 10,985 from holding COSMO FIRST LIMITED or generate 12.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BF Utilities Limited vs. COSMO FIRST LIMITED
Performance |
Timeline |
BF Utilities Limited |
COSMO FIRST LIMITED |
BF Utilities and COSMO FIRST Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BF Utilities and COSMO FIRST
The main advantage of trading using opposite BF Utilities and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BF Utilities position performs unexpectedly, COSMO FIRST 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 COSMO FIRST will offset losses from the drop in COSMO FIRST's long position.BF Utilities vs. Indo Borax Chemicals | BF Utilities vs. Kingfa Science Technology | BF Utilities vs. Alkali Metals Limited | BF Utilities vs. KNR Constructions Limited |
COSMO FIRST vs. Hindustan Construction | COSMO FIRST vs. Cartrade Tech Limited | COSMO FIRST vs. Tips Music Limited | COSMO FIRST vs. Music Broadcast 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
CEOs Directory Screen CEOs from public companies around the world | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |