Correlation Between DiGiSPICE Technologies and Bikaji Foods

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

Diversification Opportunities for DiGiSPICE Technologies and Bikaji Foods

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between DiGiSPICE and Bikaji is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding DiGiSPICE Technologies Limited and Bikaji Foods International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bikaji Foods Interna and DiGiSPICE Technologies 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 DiGiSPICE Technologies Limited are associated (or correlated) with Bikaji Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bikaji Foods Interna has no effect on the direction of DiGiSPICE Technologies i.e., DiGiSPICE Technologies and Bikaji Foods go up and down completely randomly.

Pair Corralation between DiGiSPICE Technologies and Bikaji Foods

Assuming the 90 days trading horizon DiGiSPICE Technologies Limited is expected to generate 3.12 times more return on investment than Bikaji Foods. However, DiGiSPICE Technologies is 3.12 times more volatile than Bikaji Foods International. It trades about 0.02 of its potential returns per unit of risk. Bikaji Foods International is currently generating about -0.19 per unit of risk. If you would invest  2,475  in DiGiSPICE Technologies Limited on September 5, 2025 and sell it today you would earn a total of  35.00  from holding DiGiSPICE Technologies Limited or generate 1.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

DiGiSPICE Technologies Limited  vs.  Bikaji Foods International

 Performance 
       Timeline  
DiGiSPICE Technologies 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in DiGiSPICE Technologies Limited are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, DiGiSPICE Technologies is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
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 inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

DiGiSPICE Technologies and Bikaji Foods Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with DiGiSPICE Technologies and Bikaji Foods

The main advantage of trading using opposite DiGiSPICE Technologies and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DiGiSPICE Technologies position performs unexpectedly, Bikaji Foods 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 Bikaji Foods will offset losses from the drop in Bikaji Foods' long position.
The idea behind DiGiSPICE Technologies Limited and Bikaji Foods International 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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