Correlation Between JGCHEMICALS and Bikaji Foods
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Bikaji Foods International, you can compare the effects of market volatilities on JGCHEMICALS and Bikaji Foods 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 Bikaji Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Bikaji Foods.
Diversification Opportunities for JGCHEMICALS and Bikaji Foods
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JGCHEMICALS and Bikaji is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Bikaji Foods International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bikaji Foods Interna 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 Bikaji Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bikaji Foods Interna has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Bikaji Foods go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Bikaji Foods
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 2.0 times more return on investment than Bikaji Foods. However, JGCHEMICALS is 2.0 times more volatile than Bikaji Foods International. It trades about 0.1 of its potential returns per unit of risk. Bikaji Foods International is currently generating about 0.05 per unit of risk. If you would invest 18,480 in JGCHEMICALS LIMITED on October 16, 2024 and sell it today you would earn a total of 16,800 from holding JGCHEMICALS LIMITED or generate 90.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.3% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Bikaji Foods International
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Bikaji Foods Interna |
JGCHEMICALS and Bikaji Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Bikaji Foods
The main advantage of trading using opposite JGCHEMICALS and Bikaji Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Bikaji Foods 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 Bikaji Foods will offset losses from the drop in Bikaji Foods' long position.| JGCHEMICALS vs. Total Transport Systems | JGCHEMICALS vs. Mahamaya Steel Industries | JGCHEMICALS vs. NMDC Steel Limited | JGCHEMICALS vs. Prakash Steelage Limited |
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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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