Correlation Between JGCHEMICALS and COSMO FIRST
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and COSMO FIRST LIMITED, you can compare the effects of market volatilities on JGCHEMICALS and COSMO FIRST 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 COSMO FIRST. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and COSMO FIRST.
Diversification Opportunities for JGCHEMICALS and COSMO FIRST
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JGCHEMICALS and COSMO is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and COSMO FIRST LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMO FIRST LIMITED 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 COSMO FIRST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMO FIRST LIMITED has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and COSMO FIRST go up and down completely randomly.
Pair Corralation between JGCHEMICALS and COSMO FIRST
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to under-perform the COSMO FIRST. But the stock apears to be less risky and, when comparing its historical volatility, JGCHEMICALS LIMITED is 2.31 times less risky than COSMO FIRST. The stock trades about -0.35 of its potential returns per unit of risk. The COSMO FIRST LIMITED is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 88,450 in COSMO FIRST LIMITED on October 9, 2024 and sell it today you would earn a total of 3,295 from holding COSMO FIRST LIMITED or generate 3.73% 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. COSMO FIRST LIMITED
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| COSMO FIRST LIMITED |
JGCHEMICALS and COSMO FIRST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and COSMO FIRST
The main advantage of trading using opposite JGCHEMICALS and COSMO FIRST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, COSMO FIRST 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 COSMO FIRST will offset losses from the drop in COSMO FIRST's long position.| JGCHEMICALS vs. Hindustan Zinc Limited | JGCHEMICALS vs. Vedanta Limited | JGCHEMICALS vs. MOIL Limited | JGCHEMICALS vs. Ashapura Minechem Limited |
| COSMO FIRST vs. Viceroy Hotels Limited | COSMO FIRST vs. Kohinoor Foods Limited | COSMO FIRST vs. United Breweries Limited | COSMO FIRST vs. Univa Foods Limited |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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