Correlation Between JGCHEMICALS and Future Supply
Specify exactly 2 symbols:
By analyzing existing cross correlation between JGCHEMICALS LIMITED and Future Supply Chain, you can compare the effects of market volatilities on JGCHEMICALS and Future Supply 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 Future Supply. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Future Supply.
Diversification Opportunities for JGCHEMICALS and Future Supply
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JGCHEMICALS and Future is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Future Supply Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Supply Chain 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 Future Supply. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Supply Chain has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Future Supply go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Future Supply
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to under-perform the Future Supply. But the stock apears to be less risky and, when comparing its historical volatility, JGCHEMICALS LIMITED is 1.53 times less risky than Future Supply. The stock trades about -0.32 of its potential returns per unit of risk. The Future Supply Chain is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 189.00 in Future Supply Chain on October 29, 2024 and sell it today you would earn a total of 35.00 from holding Future Supply Chain or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Future Supply Chain
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Future Supply Chain |
JGCHEMICALS and Future Supply Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Future Supply
The main advantage of trading using opposite JGCHEMICALS and Future Supply positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Future Supply 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 Future Supply will offset losses from the drop in Future Supply's long position.| JGCHEMICALS vs. Hindustan Zinc Limited | JGCHEMICALS vs. MOIL Limited | JGCHEMICALS vs. Ashapura Minechem Limited | JGCHEMICALS vs. The Orissa Minerals |
| Future Supply vs. Chembond Chemicals | Future Supply vs. Southern Petrochemicals Industries | Future Supply vs. JGCHEMICALS LIMITED | Future Supply vs. Mangalore Chemicals Fertilizers |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |