Correlation Between Akme Fintrade and JGCHEMICALS
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By analyzing existing cross correlation between Akme Fintrade India and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on Akme Fintrade 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 Akme Fintrade with a short position of JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akme Fintrade and JGCHEMICALS.
Diversification Opportunities for Akme Fintrade and JGCHEMICALS
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akme and JGCHEMICALS is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Akme Fintrade India and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS LIMITED and Akme Fintrade 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 Akme Fintrade India 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 Akme Fintrade i.e., Akme Fintrade and JGCHEMICALS go up and down completely randomly.
Pair Corralation between Akme Fintrade and JGCHEMICALS
Assuming the 90 days trading horizon Akme Fintrade India is expected to under-perform the JGCHEMICALS. But the stock apears to be less risky and, when comparing its historical volatility, Akme Fintrade India is 1.09 times less risky than JGCHEMICALS. The stock trades about -0.07 of its potential returns per unit of risk. The JGCHEMICALS LIMITED is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 18,480 in JGCHEMICALS LIMITED on December 1, 2024 and sell it today you would earn a total of 12,025 from holding JGCHEMICALS LIMITED or generate 65.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 72.38% |
| Values | Daily Returns |
Akme Fintrade India vs. JGCHEMICALS LIMITED
Performance |
| Timeline |
| Akme Fintrade India |
| JGCHEMICALS LIMITED |
Akme Fintrade and JGCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akme Fintrade and JGCHEMICALS
The main advantage of trading using opposite Akme Fintrade and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akme Fintrade 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.| Akme Fintrade vs. Electrosteel Castings Limited | Akme Fintrade vs. Prakash Steelage Limited | Akme Fintrade vs. Rainbow Childrens Medicare | Akme Fintrade vs. Mahamaya Steel Industries |
| JGCHEMICALS vs. Dharani SugarsChemicals Limited | JGCHEMICALS vs. Generic Engineering Construction | JGCHEMICALS vs. Hexa Tradex Limited | JGCHEMICALS vs. Navneet Education Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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