Correlation Between Blue Jet and Maithan Alloys
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By analyzing existing cross correlation between Blue Jet Healthcare and Maithan Alloys Limited, you can compare the effects of market volatilities on Blue Jet and Maithan Alloys 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 Jet with a short position of Maithan Alloys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Jet and Maithan Alloys.
Diversification Opportunities for Blue Jet and Maithan Alloys
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blue and Maithan is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Blue Jet Healthcare and Maithan Alloys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maithan Alloys and Blue Jet 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 Jet Healthcare are associated (or correlated) with Maithan Alloys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maithan Alloys has no effect on the direction of Blue Jet i.e., Blue Jet and Maithan Alloys go up and down completely randomly.
Pair Corralation between Blue Jet and Maithan Alloys
Assuming the 90 days trading horizon Blue Jet Healthcare is expected to generate 2.01 times more return on investment than Maithan Alloys. However, Blue Jet is 2.01 times more volatile than Maithan Alloys Limited. It trades about 0.11 of its potential returns per unit of risk. Maithan Alloys Limited is currently generating about 0.14 per unit of risk. If you would invest 49,195 in Blue Jet Healthcare on August 30, 2024 and sell it today you would earn a total of 3,110 from holding Blue Jet Healthcare or generate 6.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Jet Healthcare vs. Maithan Alloys Limited
Performance |
| Timeline |
| Blue Jet Healthcare |
| Maithan Alloys |
Blue Jet and Maithan Alloys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Jet and Maithan Alloys
The main advantage of trading using opposite Blue Jet and Maithan Alloys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Jet position performs unexpectedly, Maithan Alloys 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 Maithan Alloys will offset losses from the drop in Maithan Alloys' long position.| Blue Jet vs. India Glycols Limited | Blue Jet vs. Indo Borax Chemicals | Blue Jet vs. Kingfa Science Technology | Blue Jet vs. Alkali Metals Limited |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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