Correlation Between Bikaji Foods and MRF
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By analyzing existing cross correlation between Bikaji Foods International and MRF Limited, you can compare the effects of market volatilities on Bikaji Foods and MRF 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 Bikaji Foods with a short position of MRF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and MRF.
Diversification Opportunities for Bikaji Foods and MRF
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bikaji and MRF is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and MRF Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRF Limited and Bikaji Foods 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 Bikaji Foods International are associated (or correlated) with MRF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRF Limited has no effect on the direction of Bikaji Foods i.e., Bikaji Foods and MRF go up and down completely randomly.
Pair Corralation between Bikaji Foods and MRF
Assuming the 90 days trading horizon Bikaji Foods International is expected to generate 2.39 times more return on investment than MRF. However, Bikaji Foods is 2.39 times more volatile than MRF Limited. It trades about -0.02 of its potential returns per unit of risk. MRF Limited is currently generating about -0.1 per unit of risk. If you would invest 84,100 in Bikaji Foods International on September 2, 2024 and sell it today you would lose (3,830) from holding Bikaji Foods International or give up 4.55% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Bikaji Foods International vs. MRF Limited
Performance |
Timeline |
Bikaji Foods Interna |
MRF Limited |
Bikaji Foods and MRF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bikaji Foods and MRF
The main advantage of trading using opposite Bikaji Foods and MRF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods position performs unexpectedly, MRF 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 MRF will offset losses from the drop in MRF's long position.Bikaji Foods vs. Advani Hotels Resorts | Bikaji Foods vs. Sapphire Foods India | Bikaji Foods vs. Juniper Hotels | Bikaji Foods vs. Asian Hotels Limited |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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