Correlation Between JGCHEMICALS and Archean Chemical
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Archean Chemical Industries, you can compare the effects of market volatilities on JGCHEMICALS and Archean Chemical 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 JGCHEMICALS with a short position of Archean Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Archean Chemical.
Diversification Opportunities for JGCHEMICALS and Archean Chemical
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JGCHEMICALS and Archean is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Archean Chemical Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archean Chemical Ind and JGCHEMICALS 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 JGCHEMICALS LIMITED are associated (or correlated) with Archean Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archean Chemical Ind has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Archean Chemical go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Archean Chemical
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 1.69 times more return on investment than Archean Chemical. However, JGCHEMICALS is 1.69 times more volatile than Archean Chemical Industries. It trades about 0.14 of its potential returns per unit of risk. Archean Chemical Industries is currently generating about 0.02 per unit of risk. If you would invest 22,956 in JGCHEMICALS LIMITED on September 15, 2024 and sell it today you would earn a total of 19,254 from holding JGCHEMICALS LIMITED or generate 83.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
JGCHEMICALS LIMITED vs. Archean Chemical Industries
Performance |
Timeline |
JGCHEMICALS LIMITED |
Archean Chemical Ind |
JGCHEMICALS and Archean Chemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JGCHEMICALS and Archean Chemical
The main advantage of trading using opposite JGCHEMICALS and Archean Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Archean Chemical 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 Archean Chemical will offset losses from the drop in Archean Chemical's long position.JGCHEMICALS vs. AVALON TECHNOLOGIES LTD | JGCHEMICALS vs. ILFS Investment Managers | JGCHEMICALS vs. PB Fintech Limited | JGCHEMICALS vs. The Investment Trust |
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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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