Correlation Between General Insuranceof and JGCHEMICALS
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By analyzing existing cross correlation between General Insurance and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on General Insuranceof 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 General Insuranceof with a short position of JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Insuranceof and JGCHEMICALS.
Diversification Opportunities for General Insuranceof and JGCHEMICALS
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between General and JGCHEMICALS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding General Insurance and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS LIMITED and General Insuranceof 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 General Insurance 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 General Insuranceof i.e., General Insuranceof and JGCHEMICALS go up and down completely randomly.
Pair Corralation between General Insuranceof and JGCHEMICALS
Assuming the 90 days trading horizon General Insuranceof is expected to generate 7.84 times less return on investment than JGCHEMICALS. But when comparing it to its historical volatility, General Insurance is 1.76 times less risky than JGCHEMICALS. It trades about 0.02 of its potential returns per unit of risk. JGCHEMICALS LIMITED is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 38,835 in JGCHEMICALS LIMITED on August 29, 2024 and sell it today you would earn a total of 7,015 from holding JGCHEMICALS LIMITED or generate 18.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Insurance vs. JGCHEMICALS LIMITED
Performance |
| Timeline |
| General Insuranceof |
| JGCHEMICALS LIMITED |
General Insuranceof and JGCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Insuranceof and JGCHEMICALS
The main advantage of trading using opposite General Insuranceof and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Insuranceof 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.| General Insuranceof vs. MRF Limited | General Insuranceof vs. Nalwa Sons Investments | General Insuranceof vs. Kalyani Investment | General Insuranceof vs. Pilani Investment and |
| JGCHEMICALS vs. Rajnandini Metal Limited | JGCHEMICALS vs. India Glycols Limited | JGCHEMICALS vs. Indo Borax Chemicals | JGCHEMICALS vs. Kingfa Science Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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