Correlation Between JBM Auto and Indian Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between JBM Auto Limited and The Indian Hotels, you can compare the effects of market volatilities on JBM Auto and Indian Hotels 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 Indian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of JBM Auto and Indian Hotels.
Diversification Opportunities for JBM Auto and Indian Hotels
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JBM and Indian is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding JBM Auto Limited and The Indian Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Hotels 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 Indian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Hotels has no effect on the direction of JBM Auto i.e., JBM Auto and Indian Hotels go up and down completely randomly.
Pair Corralation between JBM Auto and Indian Hotels
Assuming the 90 days trading horizon JBM Auto is expected to generate 1.08 times less return on investment than Indian Hotels. In addition to that, JBM Auto is 1.7 times more volatile than The Indian Hotels. It trades about 0.3 of its total potential returns per unit of risk. The Indian Hotels is currently generating about 0.55 per unit of volatility. If you would invest 71,415 in The Indian Hotels on September 14, 2024 and sell it today you would earn a total of 12,255 from holding The Indian Hotels or generate 17.16% 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. The Indian Hotels
Performance |
| Timeline |
| JBM Auto Limited |
| Indian Hotels |
JBM Auto and Indian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JBM Auto and Indian Hotels
The main advantage of trading using opposite JBM Auto and Indian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JBM Auto position performs unexpectedly, Indian Hotels 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 Indian Hotels will offset losses from the drop in Indian Hotels' long position.| JBM Auto vs. The Indian Hotels | JBM Auto vs. Praxis Home Retail | JBM Auto vs. Juniper Hotels | JBM Auto vs. Zodiac Clothing |
| Indian Hotels vs. Indian Railway Finance | Indian Hotels vs. Cholamandalam Financial Holdings | Indian Hotels vs. Reliance Industries Limited | Indian Hotels vs. Tata Consultancy 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |