Correlation Between Bajaj Holdings and JM Financial
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By analyzing existing cross correlation between Bajaj Holdings Investment and JM Financial Limited, you can compare the effects of market volatilities on Bajaj Holdings and JM Financial 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 Bajaj Holdings with a short position of JM Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bajaj Holdings and JM Financial.
Diversification Opportunities for Bajaj Holdings and JM Financial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bajaj and JMFINANCIL is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bajaj Holdings Investment and JM Financial Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JM Financial Limited and Bajaj Holdings 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 Bajaj Holdings Investment are associated (or correlated) with JM Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JM Financial Limited has no effect on the direction of Bajaj Holdings i.e., Bajaj Holdings and JM Financial go up and down completely randomly.
Pair Corralation between Bajaj Holdings and JM Financial
Assuming the 90 days trading horizon Bajaj Holdings Investment is expected to generate 0.66 times more return on investment than JM Financial. However, Bajaj Holdings Investment is 1.51 times less risky than JM Financial. It trades about 0.04 of its potential returns per unit of risk. JM Financial Limited is currently generating about -0.07 per unit of risk. If you would invest 1,035,000 in Bajaj Holdings Investment on September 2, 2024 and sell it today you would earn a total of 11,825 from holding Bajaj Holdings Investment or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bajaj Holdings Investment vs. JM Financial Limited
Performance |
| Timeline |
| Bajaj Holdings Investment |
| JM Financial Limited |
Bajaj Holdings and JM Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bajaj Holdings and JM Financial
The main advantage of trading using opposite Bajaj Holdings and JM Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bajaj Holdings position performs unexpectedly, JM Financial 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 JM Financial will offset losses from the drop in JM Financial's long position.| Bajaj Holdings vs. The Indian Hotels | Bajaj Holdings vs. Blue Coast Hotels | Bajaj Holdings vs. Viceroy Hotels Limited | Bajaj Holdings vs. Paramount Communications Limited |
| JM Financial vs. Nalwa Sons Investments | JM Financial vs. Kalyani Investment | JM Financial vs. Pilani Investment and | JM Financial vs. Vardhman Holdings 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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