Correlation Between Jayant Agro and Investment Trust
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By analyzing existing cross correlation between Jayant Agro Organics and The Investment Trust, you can compare the effects of market volatilities on Jayant Agro and Investment Trust 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 Jayant Agro with a short position of Investment Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jayant Agro and Investment Trust.
Diversification Opportunities for Jayant Agro and Investment Trust
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jayant and Investment is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jayant Agro Organics and The Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investment Trust and Jayant Agro 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 Jayant Agro Organics are associated (or correlated) with Investment Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investment Trust has no effect on the direction of Jayant Agro i.e., Jayant Agro and Investment Trust go up and down completely randomly.
Pair Corralation between Jayant Agro and Investment Trust
Assuming the 90 days trading horizon Jayant Agro Organics is expected to under-perform the Investment Trust. But the stock apears to be less risky and, when comparing its historical volatility, Jayant Agro Organics is 1.02 times less risky than Investment Trust. The stock trades about -0.05 of its potential returns per unit of risk. The The Investment Trust is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 18,276 in The Investment Trust on November 2, 2024 and sell it today you would lose (950.00) from holding The Investment Trust or give up 5.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jayant Agro Organics vs. The Investment Trust
Performance |
| Timeline |
| Jayant Agro Organics |
| Investment Trust |
Jayant Agro and Investment Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jayant Agro and Investment Trust
The main advantage of trading using opposite Jayant Agro and Investment Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jayant Agro position performs unexpectedly, Investment Trust 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 Investment Trust will offset losses from the drop in Investment Trust's long position.| Jayant Agro vs. V Mart Retail Limited | Jayant Agro vs. Silgo Retail Limited | Jayant Agro vs. Akme Fintrade India | Jayant Agro vs. Kotak Mahindra Bank |
| Investment Trust vs. Touchwood Entertainment Limited | Investment Trust vs. HT Media Limited | Investment Trust vs. Eros International Media | Investment Trust vs. Varun Beverages Limited |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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