Correlation Between Jai Balaji and Premier Polyfilm
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By analyzing existing cross correlation between Jai Balaji Industries and Premier Polyfilm Limited, you can compare the effects of market volatilities on Jai Balaji and Premier Polyfilm 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 Jai Balaji with a short position of Premier Polyfilm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jai Balaji and Premier Polyfilm.
Diversification Opportunities for Jai Balaji and Premier Polyfilm
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jai and Premier is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jai Balaji Industries and Premier Polyfilm Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Polyfilm and Jai Balaji 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 Jai Balaji Industries are associated (or correlated) with Premier Polyfilm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Polyfilm has no effect on the direction of Jai Balaji i.e., Jai Balaji and Premier Polyfilm go up and down completely randomly.
Pair Corralation between Jai Balaji and Premier Polyfilm
Assuming the 90 days trading horizon Jai Balaji Industries is expected to under-perform the Premier Polyfilm. But the stock apears to be less risky and, when comparing its historical volatility, Jai Balaji Industries is 2.05 times less risky than Premier Polyfilm. The stock trades about -0.29 of its potential returns per unit of risk. The Premier Polyfilm Limited is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 6,361 in Premier Polyfilm Limited on October 10, 2024 and sell it today you would earn a total of 1,817 from holding Premier Polyfilm Limited or generate 28.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jai Balaji Industries vs. Premier Polyfilm Limited
Performance |
| Timeline |
| Jai Balaji Industries |
| Premier Polyfilm |
Jai Balaji and Premier Polyfilm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jai Balaji and Premier Polyfilm
The main advantage of trading using opposite Jai Balaji and Premier Polyfilm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jai Balaji position performs unexpectedly, Premier Polyfilm 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 Premier Polyfilm will offset losses from the drop in Premier Polyfilm's long position.| Jai Balaji vs. Manaksia Coated Metals | Jai Balaji vs. Ratnamani Metals Tubes | Jai Balaji vs. Can Fin Homes | Jai Balaji vs. Shyam Metalics and |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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