Correlation Between JGCHEMICALS and Honeywell Automation
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Honeywell Automation India, you can compare the effects of market volatilities on JGCHEMICALS and Honeywell Automation 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 Honeywell Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Honeywell Automation.
Diversification Opportunities for JGCHEMICALS and Honeywell Automation
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between JGCHEMICALS and Honeywell is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Honeywell Automation India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honeywell Automation 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 Honeywell Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Honeywell Automation has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Honeywell Automation go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Honeywell Automation
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 2.69 times more return on investment than Honeywell Automation. However, JGCHEMICALS is 2.69 times more volatile than Honeywell Automation India. It trades about 0.14 of its potential returns per unit of risk. Honeywell Automation India is currently generating about 0.01 per unit of risk. If you would invest 18,480 in JGCHEMICALS LIMITED on August 27, 2024 and sell it today you would earn a total of 24,695 from holding JGCHEMICALS LIMITED or generate 133.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.88% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Honeywell Automation India
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Honeywell Automation |
JGCHEMICALS and Honeywell Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Honeywell Automation
The main advantage of trading using opposite JGCHEMICALS and Honeywell Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Honeywell Automation 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 Honeywell Automation will offset losses from the drop in Honeywell Automation's long position.| JGCHEMICALS vs. Agro Tech Foods | JGCHEMICALS vs. Teamlease Services Limited | JGCHEMICALS vs. Hindustan Foods Limited | JGCHEMICALS vs. Parag Milk Foods |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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