Correlation Between Bikaji Foods and DiGiSPICE Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bikaji Foods and DiGiSPICE Technologies 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 Bikaji Foods and DiGiSPICE Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bikaji Foods International and DiGiSPICE Technologies Limited, you can compare the effects of market volatilities on Bikaji Foods and DiGiSPICE Technologies 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 DiGiSPICE Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and DiGiSPICE Technologies.

Diversification Opportunities for Bikaji Foods and DiGiSPICE Technologies

0.44
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Bikaji and DiGiSPICE is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and DiGiSPICE Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DiGiSPICE Technologies 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 DiGiSPICE Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DiGiSPICE Technologies has no effect on the direction of Bikaji Foods i.e., Bikaji Foods and DiGiSPICE Technologies go up and down completely randomly.

Pair Corralation between Bikaji Foods and DiGiSPICE Technologies

Assuming the 90 days trading horizon Bikaji Foods International is expected to under-perform the DiGiSPICE Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Bikaji Foods International is 2.89 times less risky than DiGiSPICE Technologies. The stock trades about -0.14 of its potential returns per unit of risk. The DiGiSPICE Technologies Limited is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  2,574  in DiGiSPICE Technologies Limited on August 29, 2025 and sell it today you would lose (274.00) from holding DiGiSPICE Technologies Limited or give up 10.64% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Bikaji Foods International  vs.  DiGiSPICE Technologies Limited

 Performance 
       Timeline  
Bikaji Foods Interna 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Bikaji Foods International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
DiGiSPICE Technologies 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days DiGiSPICE Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Bikaji Foods and DiGiSPICE Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bikaji Foods and DiGiSPICE Technologies

The main advantage of trading using opposite Bikaji Foods and DiGiSPICE Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods position performs unexpectedly, DiGiSPICE Technologies 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 DiGiSPICE Technologies will offset losses from the drop in DiGiSPICE Technologies' long position.
The idea behind Bikaji Foods International and DiGiSPICE Technologies Limited 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.
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

Other Complementary Tools

Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
CEOs Directory
Screen CEOs from public companies around the world
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences