Correlation Between JB Chemicals and Sterling
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By analyzing existing cross correlation between JB Chemicals Pharmaceuticals and Sterling and Wilson, you can compare the effects of market volatilities on JB Chemicals and Sterling 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 Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of JB Chemicals and Sterling.
Diversification Opportunities for JB Chemicals and Sterling
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JBCHEPHARM and Sterling is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding JB Chemicals Pharmaceuticals and Sterling and Wilson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling and Wilson 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 Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling and Wilson has no effect on the direction of JB Chemicals i.e., JB Chemicals and Sterling go up and down completely randomly.
Pair Corralation between JB Chemicals and Sterling
Assuming the 90 days trading horizon JB Chemicals Pharmaceuticals is expected to generate 2.74 times more return on investment than Sterling. However, JB Chemicals is 2.74 times more volatile than Sterling and Wilson. It trades about 0.05 of its potential returns per unit of risk. Sterling and Wilson is currently generating about 0.05 per unit of risk. If you would invest 94,667 in JB Chemicals Pharmaceuticals on October 11, 2024 and sell it today you would earn a total of 94,968 from holding JB Chemicals Pharmaceuticals or generate 100.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
JB Chemicals Pharmaceuticals vs. Sterling and Wilson
Performance |
| Timeline |
| JB Chemicals Pharmac |
| Sterling and Wilson |
JB Chemicals and Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JB Chemicals and Sterling
The main advantage of trading using opposite JB Chemicals and Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JB Chemicals position performs unexpectedly, Sterling 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 Sterling will offset losses from the drop in Sterling's 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 |
| Sterling vs. ICICI Bank Limited | Sterling vs. The Federal Bank | Sterling vs. Sportking India Limited | Sterling vs. DCM Financial Services |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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