Correlation Between Bigbloc Construction and UTI Asset

Can any of the company-specific risk be diversified away by investing in both Bigbloc Construction and UTI Asset 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 Bigbloc Construction and UTI Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bigbloc Construction Limited and UTI Asset Management, you can compare the effects of market volatilities on Bigbloc Construction and UTI Asset 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 Bigbloc Construction with a short position of UTI Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bigbloc Construction and UTI Asset.

Diversification Opportunities for Bigbloc Construction and UTI Asset

-0.5

Correlation Coefficient

Bigbloc Construction  UTI Asset

Very good diversification

The 3 months correlation between Bigbloc and UTI is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bigbloc Construction Limited and UTI Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTI Asset Management and Bigbloc Construction 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 Bigbloc Construction Limited are associated (or correlated) with UTI Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTI Asset Management has no effect on the direction of Bigbloc Construction i.e., Bigbloc Construction and UTI Asset go up and down completely randomly.

Pair Corralation between Bigbloc Construction and UTI Asset

Assuming the 90 days trading horizon Bigbloc Construction Limited is expected to under-perform the UTI Asset. In addition to that, Bigbloc Construction is 1.07 times more volatile than UTI Asset Management. It trades about -0.04 of its total potential returns per unit of risk. UTI Asset Management is currently generating about 0.23 per unit of volatility. If you would invest  99,371  in UTI Asset Management on May 7, 2025 and sell it today you would earn a total of  32,039  from holding UTI Asset Management or generate 32.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bigbloc Construction Limited  vs.  UTI Asset Management

Bigbloc Construction

Risk-Adjusted Performance

Weakest

Over the last 90 days Bigbloc Construction Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Bigbloc Construction is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

UTI Asset Management

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in UTI Asset Management are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, UTI Asset sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bigbloc Construction and UTI Asset

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

The idea behind Bigbloc Construction Limited and UTI Asset Management 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.