Correlation Between JBM Auto and Gokul Refoils
Can any of the company-specific risk be diversified away by investing in both JBM Auto and Gokul Refoils at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JBM Auto and Gokul Refoils into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JBM Auto Limited and Gokul Refoils and, you can compare the effects of market volatilities on JBM Auto and Gokul Refoils 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 JBM Auto with a short position of Gokul Refoils. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBM Auto and Gokul Refoils.
Diversification Opportunities for JBM Auto and Gokul Refoils
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBM and Gokul is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding JBM Auto Limited and Gokul Refoils and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gokul Refoils and JBM Auto 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 JBM Auto Limited are associated (or correlated) with Gokul Refoils. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gokul Refoils has no effect on the direction of JBM Auto i.e., JBM Auto and Gokul Refoils go up and down completely randomly.
Pair Corralation between JBM Auto and Gokul Refoils
Assuming the 90 days trading horizon JBM Auto Limited is expected to under-perform the Gokul Refoils. But the stock apears to be less risky and, when comparing its historical volatility, JBM Auto Limited is 2.11 times less risky than Gokul Refoils. The stock trades about -0.01 of its potential returns per unit of risk. The Gokul Refoils and is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,363 in Gokul Refoils and on September 4, 2024 and sell it today you would earn a total of 132.00 from holding Gokul Refoils and or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
JBM Auto Limited vs. Gokul Refoils and
Performance |
| Timeline |
| JBM Auto Limited |
| Gokul Refoils |
JBM Auto and Gokul Refoils Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBM Auto and Gokul Refoils
The main advantage of trading using opposite JBM Auto and Gokul Refoils positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBM Auto position performs unexpectedly, Gokul Refoils 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 Gokul Refoils will offset losses from the drop in Gokul Refoils' long position.| JBM Auto vs. Network18 Media Investments | JBM Auto vs. NMDC Steel Limited | JBM Auto vs. Sunflag Iron And | JBM Auto vs. STEEL EXCHANGE INDIA |
| Gokul Refoils vs. Compucom Software Limited | Gokul Refoils vs. Paramount Communications Limited | Gokul Refoils vs. Home First Finance | Gokul Refoils vs. Life Insurance |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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