Correlation Between Bhiraj Office and INET Leasehold

Can any of the company-specific risk be diversified away by investing in both Bhiraj Office and INET Leasehold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bhiraj Office and INET Leasehold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bhiraj Office Leasehold and INET Leasehold REIT, you can compare the effects of market volatilities on Bhiraj Office and INET Leasehold 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 Bhiraj Office with a short position of INET Leasehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bhiraj Office and INET Leasehold.

Diversification Opportunities for Bhiraj Office and INET Leasehold

0.8

Correlation Coefficient

Bhiraj Office  INET Leasehold

Very poor diversification

The 3 months correlation between Bhiraj and INET is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Bhiraj Office Leasehold and INET Leasehold REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INET Leasehold REIT and Bhiraj Office 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 Bhiraj Office Leasehold are associated (or correlated) with INET Leasehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INET Leasehold REIT has no effect on the direction of Bhiraj Office i.e., Bhiraj Office and INET Leasehold go up and down completely randomly.

Pair Corralation between Bhiraj Office and INET Leasehold

Assuming the 90 days trading horizon Bhiraj Office is expected to generate 1.79 times less return on investment than INET Leasehold. In addition to that, Bhiraj Office is 1.14 times more volatile than INET Leasehold REIT. It trades about 0.09 of its total potential returns per unit of risk. INET Leasehold REIT is currently generating about 0.18 per unit of volatility. If you would invest  851.00  in INET Leasehold REIT on April 20, 2025 and sell it today you would earn a total of  89.00  from holding INET Leasehold REIT or generate 10.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.33%
Values	Daily Returns

Bhiraj Office Leasehold  vs.  INET Leasehold REIT

Bhiraj Office Leasehold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bhiraj Office Leasehold are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Bhiraj Office is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

INET Leasehold REIT

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in INET Leasehold REIT are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, INET Leasehold may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bhiraj Office and INET Leasehold

The main advantage of trading using opposite Bhiraj Office and INET Leasehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bhiraj Office position performs unexpectedly, INET Leasehold 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 INET Leasehold will offset losses from the drop in INET Leasehold's long position.

The idea behind Bhiraj Office Leasehold and INET Leasehold REIT pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.