Correlation Between Blue Coast and Jindal Steel
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By analyzing existing cross correlation between Blue Coast Hotels and Jindal Steel Power, you can compare the effects of market volatilities on Blue Coast and Jindal 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 Blue Coast with a short position of Jindal Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Coast and Jindal Steel.
Diversification Opportunities for Blue Coast and Jindal Steel
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blue and Jindal is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Blue Coast Hotels and Jindal Steel Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindal Steel Power and Blue Coast 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 Blue Coast Hotels are associated (or correlated) with Jindal Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindal Steel Power has no effect on the direction of Blue Coast i.e., Blue Coast and Jindal Steel go up and down completely randomly.
Pair Corralation between Blue Coast and Jindal Steel
Assuming the 90 days trading horizon Blue Coast Hotels is expected to generate 2.33 times more return on investment than Jindal Steel. However, Blue Coast is 2.33 times more volatile than Jindal Steel Power. It trades about 0.8 of its potential returns per unit of risk. Jindal Steel Power is currently generating about -0.13 per unit of risk. If you would invest 1,357 in Blue Coast Hotels on October 25, 2024 and sell it today you would earn a total of 1,230 from holding Blue Coast Hotels or generate 90.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Coast Hotels vs. Jindal Steel Power
Performance |
| Timeline |
| Blue Coast Hotels |
| Jindal Steel Power |
Blue Coast and Jindal Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Coast and Jindal Steel
The main advantage of trading using opposite Blue Coast and Jindal Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Coast position performs unexpectedly, Jindal 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 Jindal Steel will offset losses from the drop in Jindal Steel's long position.| Blue Coast vs. Transport of | Blue Coast vs. Popular Vehicles and | Blue Coast vs. V Mart Retail Limited | Blue Coast vs. Welspun Investments and |
| Jindal Steel vs. NMDC Limited | Jindal Steel vs. Steel Authority of | Jindal Steel vs. Embassy Office Parks | Jindal Steel vs. Jai Balaji 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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