Correlation Between JB Chemicals and SIL Investments
Specify exactly 2 symbols:
By analyzing existing cross correlation between JB Chemicals Pharmaceuticals and SIL Investments Limited, you can compare the effects of market volatilities on JB Chemicals and SIL Investments 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 JB Chemicals with a short position of SIL Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Chemicals and SIL Investments.
Diversification Opportunities for JB Chemicals and SIL Investments
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between JBCHEPHARM and SIL is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding JB Chemicals Pharmaceuticals and SIL Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIL Investments and JB Chemicals 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 JB Chemicals Pharmaceuticals are associated (or correlated) with SIL Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIL Investments has no effect on the direction of JB Chemicals i.e., JB Chemicals and SIL Investments go up and down completely randomly.
Pair Corralation between JB Chemicals and SIL Investments
Assuming the 90 days trading horizon JB Chemicals Pharmaceuticals is expected to generate 1.18 times more return on investment than SIL Investments. However, JB Chemicals is 1.18 times more volatile than SIL Investments Limited. It trades about 0.1 of its potential returns per unit of risk. SIL Investments Limited is currently generating about -0.41 per unit of risk. If you would invest 181,500 in JB Chemicals Pharmaceuticals on October 12, 2024 and sell it today you would earn a total of 5,530 from holding JB Chemicals Pharmaceuticals or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JB Chemicals Pharmaceuticals vs. SIL Investments Limited
Performance |
| Timeline |
| JB Chemicals Pharmac |
| SIL Investments |
JB Chemicals and SIL Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Chemicals and SIL Investments
The main advantage of trading using opposite JB Chemicals and SIL Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Chemicals position performs unexpectedly, SIL Investments 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 SIL Investments will offset losses from the drop in SIL Investments' long position.| JB Chemicals vs. Kewal Kiran Clothing | JB Chemicals vs. Music Broadcast Limited | JB Chemicals vs. Zodiac Clothing | JB Chemicals vs. Sudarshan Chemical Industries |
| SIL Investments vs. Alkali Metals Limited | SIL Investments vs. Industrial Investment Trust | SIL Investments vs. 21st Century Management | SIL Investments vs. LLOYDS METALS AND |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |