Correlation Between Industrial Investment and JM Financial
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By analyzing existing cross correlation between Industrial Investment Trust and JM Financial Limited, you can compare the effects of market volatilities on Industrial Investment and JM Financial 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 Industrial Investment with a short position of JM Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Investment and JM Financial.
Diversification Opportunities for Industrial Investment and JM Financial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and JMFINANCIL is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Investment Trust and JM Financial Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JM Financial Limited and Industrial Investment 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 Industrial Investment Trust are associated (or correlated) with JM Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JM Financial Limited has no effect on the direction of Industrial Investment i.e., Industrial Investment and JM Financial go up and down completely randomly.
Pair Corralation between Industrial Investment and JM Financial
Assuming the 90 days trading horizon Industrial Investment Trust is expected to generate 1.16 times more return on investment than JM Financial. However, Industrial Investment is 1.16 times more volatile than JM Financial Limited. It trades about 0.34 of its potential returns per unit of risk. JM Financial Limited is currently generating about -0.02 per unit of risk. If you would invest 32,200 in Industrial Investment Trust on August 31, 2024 and sell it today you would earn a total of 6,545 from holding Industrial Investment Trust or generate 20.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Industrial Investment Trust vs. JM Financial Limited
Performance |
| Timeline |
| Industrial Investment |
| JM Financial Limited |
Industrial Investment and JM Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Investment and JM Financial
The main advantage of trading using opposite Industrial Investment and JM Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Investment position performs unexpectedly, JM Financial 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 JM Financial will offset losses from the drop in JM Financial's long position.| Industrial Investment vs. ICICI Securities Limited | Industrial Investment vs. Nippon Life India | Industrial Investment vs. Fortis Healthcare Limited | Industrial Investment vs. ICICI Lombard General |
| JM Financial vs. Newgen Software Technologies | JM Financial vs. Industrial Investment Trust | JM Financial vs. Bajaj Holdings Investment | JM Financial vs. The Investment Trust |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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