Correlation Between Bikaji Foods and JGCHEMICALS
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By analyzing existing cross correlation between Bikaji Foods International and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on Bikaji Foods 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 Bikaji Foods with a short position of JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bikaji Foods and JGCHEMICALS.
Diversification Opportunities for Bikaji Foods and JGCHEMICALS
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bikaji and JGCHEMICALS is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bikaji Foods International and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS LIMITED and Bikaji Foods 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 Bikaji Foods International 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 Bikaji Foods i.e., Bikaji Foods and JGCHEMICALS go up and down completely randomly.
Pair Corralation between Bikaji Foods and JGCHEMICALS
Assuming the 90 days trading horizon Bikaji Foods International is expected to generate 0.8 times more return on investment than JGCHEMICALS. However, Bikaji Foods International is 1.25 times less risky than JGCHEMICALS. It trades about -0.5 of its potential returns per unit of risk. JGCHEMICALS LIMITED is currently generating about -0.49 per unit of risk. If you would invest 80,860 in Bikaji Foods International on October 16, 2024 and sell it today you would lose (12,385) from holding Bikaji Foods International or give up 15.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bikaji Foods International vs. JGCHEMICALS LIMITED
Performance |
| Timeline |
| Bikaji Foods Interna |
| JGCHEMICALS LIMITED |
Bikaji Foods and JGCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bikaji Foods and JGCHEMICALS
The main advantage of trading using opposite Bikaji Foods and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bikaji Foods 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.| Bikaji Foods vs. Sintex Plastics Technology | Bikaji Foods vs. Selan Exploration Technology | Bikaji Foods vs. Nucleus Software Exports | Bikaji Foods vs. Syrma SGS Technology |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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