Correlation Between 20 Microns and JGCHEMICALS
Specify exactly 2 symbols:
By analyzing existing cross correlation between 20 Microns Limited and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on 20 Microns and JGCHEMICALS 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 20 Microns with a short position of JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 20 Microns and JGCHEMICALS.
Diversification Opportunities for 20 Microns and JGCHEMICALS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 20MICRONS and JGCHEMICALS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding 20 Microns Limited and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS LIMITED and 20 Microns 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 20 Microns Limited are associated (or correlated) with JGCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JGCHEMICALS LIMITED has no effect on the direction of 20 Microns i.e., 20 Microns and JGCHEMICALS go up and down completely randomly.
Pair Corralation between 20 Microns and JGCHEMICALS
Assuming the 90 days trading horizon 20 Microns Limited is expected to under-perform the JGCHEMICALS. But the stock apears to be less risky and, when comparing its historical volatility, 20 Microns Limited is 3.02 times less risky than JGCHEMICALS. The stock trades about -0.35 of its potential returns per unit of risk. The JGCHEMICALS LIMITED is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 34,305 in JGCHEMICALS LIMITED on September 2, 2024 and sell it today you would earn a total of 9,200 from holding JGCHEMICALS LIMITED or generate 26.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
20 Microns Limited vs. JGCHEMICALS LIMITED
Performance |
| Timeline |
| 20 Microns Limited |
| JGCHEMICALS LIMITED |
20 Microns and JGCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 20 Microns and JGCHEMICALS
The main advantage of trading using opposite 20 Microns and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 20 Microns position performs unexpectedly, JGCHEMICALS 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 JGCHEMICALS will offset losses from the drop in JGCHEMICALS's long position.| 20 Microns vs. Baazar Style Retail | 20 Microns vs. Cartrade Tech Limited | 20 Microns vs. Manaksia Steels Limited | 20 Microns vs. SAL Steel Limited |
| JGCHEMICALS vs. Spencers Retail Limited | JGCHEMICALS vs. Geojit Financial Services | JGCHEMICALS vs. Bandhan Bank Limited | JGCHEMICALS vs. Life Insurance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |