Correlation Between Barbeque Nation and JSW Steel
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By analyzing existing cross correlation between Barbeque Nation Hospitality and JSW Steel Limited, you can compare the effects of market volatilities on Barbeque Nation and JSW Steel 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 Barbeque Nation with a short position of JSW Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barbeque Nation and JSW Steel.
Diversification Opportunities for Barbeque Nation and JSW Steel
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Barbeque and JSW is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Barbeque Nation Hospitality and JSW Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSW Steel Limited and Barbeque Nation 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 Barbeque Nation Hospitality are associated (or correlated) with JSW Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSW Steel Limited has no effect on the direction of Barbeque Nation i.e., Barbeque Nation and JSW Steel go up and down completely randomly.
Pair Corralation between Barbeque Nation and JSW Steel
Assuming the 90 days trading horizon Barbeque Nation Hospitality is expected to under-perform the JSW Steel. In addition to that, Barbeque Nation is 1.35 times more volatile than JSW Steel Limited. It trades about -0.06 of its total potential returns per unit of risk. JSW Steel Limited is currently generating about 0.04 per unit of volatility. If you would invest 73,349 in JSW Steel Limited on September 28, 2024 and sell it today you would earn a total of 17,981 from holding JSW Steel Limited or generate 24.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barbeque Nation Hospitality vs. JSW Steel Limited
Performance |
| Timeline |
| Barbeque Nation Hosp |
| JSW Steel Limited |
Barbeque Nation and JSW Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barbeque Nation and JSW Steel
The main advantage of trading using opposite Barbeque Nation and JSW Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barbeque Nation position performs unexpectedly, JSW Steel 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 JSW Steel will offset losses from the drop in JSW Steel's long position.| Barbeque Nation vs. Kingfa Science Technology | Barbeque Nation vs. Rico Auto Industries | Barbeque Nation vs. GACM Technologies Limited | Barbeque Nation vs. COSMO FIRST LIMITED |
| JSW Steel vs. Omkar Speciality Chemicals | JSW Steel vs. Barbeque Nation Hospitality | JSW Steel vs. Zydus Wellness Limited | JSW Steel vs. Archean Chemical Industries |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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