Correlation Between Bodhi Tree and Baazar Style
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By analyzing existing cross correlation between Bodhi Tree Multimedia and Baazar Style Retail, you can compare the effects of market volatilities on Bodhi Tree and Baazar Style 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 Bodhi Tree with a short position of Baazar Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bodhi Tree and Baazar Style.
Diversification Opportunities for Bodhi Tree and Baazar Style
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bodhi and Baazar is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bodhi Tree Multimedia and Baazar Style Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baazar Style Retail and Bodhi Tree 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 Bodhi Tree Multimedia are associated (or correlated) with Baazar Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baazar Style Retail has no effect on the direction of Bodhi Tree i.e., Bodhi Tree and Baazar Style go up and down completely randomly.
Pair Corralation between Bodhi Tree and Baazar Style
Assuming the 90 days trading horizon Bodhi Tree Multimedia is expected to generate 1.58 times more return on investment than Baazar Style. However, Bodhi Tree is 1.58 times more volatile than Baazar Style Retail. It trades about 0.15 of its potential returns per unit of risk. Baazar Style Retail is currently generating about -0.24 per unit of risk. If you would invest 1,137 in Bodhi Tree Multimedia on October 14, 2024 and sell it today you would earn a total of 144.00 from holding Bodhi Tree Multimedia or generate 12.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bodhi Tree Multimedia vs. Baazar Style Retail
Performance |
Timeline |
Bodhi Tree Multimedia |
Baazar Style Retail |
Bodhi Tree and Baazar Style Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bodhi Tree and Baazar Style
The main advantage of trading using opposite Bodhi Tree and Baazar Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bodhi Tree position performs unexpectedly, Baazar Style 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 Baazar Style will offset losses from the drop in Baazar Style's long position.Bodhi Tree vs. California Software | Bodhi Tree vs. ZF Commercial Vehicle | Bodhi Tree vs. Dev Information Technology | Bodhi Tree vs. Golden Tobacco Limited |
Baazar Style vs. V2 Retail Limited | Baazar Style vs. Credo Brands Marketing | Baazar Style vs. Datamatics Global Services | Baazar Style 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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