Correlation Between ITTEFAQ Iron and JS Global
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By analyzing existing cross correlation between ITTEFAQ Iron Industries and JS Global Banking, you can compare the effects of market volatilities on ITTEFAQ Iron and JS Global 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 ITTEFAQ Iron with a short position of JS Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITTEFAQ Iron and JS Global.
Diversification Opportunities for ITTEFAQ Iron and JS Global
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between ITTEFAQ and JSGBETF is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding ITTEFAQ Iron Industries and JS Global Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Global Banking and ITTEFAQ Iron 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 ITTEFAQ Iron Industries are associated (or correlated) with JS Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Global Banking has no effect on the direction of ITTEFAQ Iron i.e., ITTEFAQ Iron and JS Global go up and down completely randomly.
Pair Corralation between ITTEFAQ Iron and JS Global
Assuming the 90 days trading horizon ITTEFAQ Iron Industries is expected to under-perform the JS Global. But the stock apears to be less risky and, when comparing its historical volatility, ITTEFAQ Iron Industries is 1.13 times less risky than JS Global. The stock trades about -0.03 of its potential returns per unit of risk. The JS Global Banking is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,655 in JS Global Banking on August 28, 2024 and sell it today you would earn a total of 460.00 from holding JS Global Banking or generate 27.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.19% |
| Values | Daily Returns |
ITTEFAQ Iron Industries vs. JS Global Banking
Performance |
| Timeline |
| ITTEFAQ Iron Industries |
| JS Global Banking |
ITTEFAQ Iron and JS Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITTEFAQ Iron and JS Global
The main advantage of trading using opposite ITTEFAQ Iron and JS Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITTEFAQ Iron position performs unexpectedly, JS Global 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 JS Global will offset losses from the drop in JS Global's long position.| ITTEFAQ Iron vs. Oil and Gas | ITTEFAQ Iron vs. Pakistan State Oil | ITTEFAQ Iron vs. Pakistan Petroleum | ITTEFAQ Iron vs. Engro |
| JS Global vs. National Bank of | JS Global vs. Escorts Investment Bank | JS Global vs. Jubilee Life Insurance | JS Global vs. Soneri Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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