Correlation Between JGCHEMICALS and City Union
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and City Union Bank, you can compare the effects of market volatilities on JGCHEMICALS and City Union 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 City Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and City Union.
Diversification Opportunities for JGCHEMICALS and City Union
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JGCHEMICALS and City is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and City Union Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Union Bank 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 City Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Union Bank has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and City Union go up and down completely randomly.
Pair Corralation between JGCHEMICALS and City Union
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 2.02 times more return on investment than City Union. However, JGCHEMICALS is 2.02 times more volatile than City Union Bank. It trades about 0.1 of its potential returns per unit of risk. City Union Bank is currently generating about 0.02 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 17,935 from holding JGCHEMICALS LIMITED or generate 97.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.59% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. City Union Bank
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| City Union Bank |
JGCHEMICALS and City Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and City Union
The main advantage of trading using opposite JGCHEMICALS and City Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, City Union 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 City Union will offset losses from the drop in City Union's long position.| JGCHEMICALS vs. Sintex Plastics Technology | JGCHEMICALS vs. Sonata Software Limited | JGCHEMICALS vs. Samhi Hotels Limited | JGCHEMICALS vs. Newgen Software Technologies |
| City Union vs. Consolidated Construction Consortium | City Union vs. Neogen Chemicals Limited | City Union vs. DMCC SPECIALITY CHEMICALS | City Union vs. Tata Chemicals 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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