Correlation Between JGCHEMICALS and Kilitch Drugs
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Kilitch Drugs Limited, you can compare the effects of market volatilities on JGCHEMICALS and Kilitch Drugs 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 Kilitch Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Kilitch Drugs.
Diversification Opportunities for JGCHEMICALS and Kilitch Drugs
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between JGCHEMICALS and Kilitch is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Kilitch Drugs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kilitch Drugs 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 Kilitch Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kilitch Drugs Limited has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Kilitch Drugs go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Kilitch Drugs
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 1.52 times more return on investment than Kilitch Drugs. However, JGCHEMICALS is 1.52 times more volatile than Kilitch Drugs Limited. It trades about 0.13 of its potential returns per unit of risk. Kilitch Drugs Limited is currently generating about 0.07 per unit of risk. If you would invest 18,480 in JGCHEMICALS LIMITED on September 5, 2024 and sell it today you would earn a total of 25,465 from holding JGCHEMICALS LIMITED or generate 137.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 36.73% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Kilitch Drugs Limited
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Kilitch Drugs Limited |
JGCHEMICALS and Kilitch Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Kilitch Drugs
The main advantage of trading using opposite JGCHEMICALS and Kilitch Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Kilitch Drugs 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 Kilitch Drugs will offset losses from the drop in Kilitch Drugs' long position.| JGCHEMICALS vs. Karur Vysya Bank | JGCHEMICALS vs. Motilal Oswal Financial | JGCHEMICALS vs. Bank of Maharashtra | JGCHEMICALS vs. Praxis Home Retail |
| Kilitch Drugs vs. JGCHEMICALS LIMITED | Kilitch Drugs vs. Hindcon Chemicals Limited | Kilitch Drugs vs. ROUTE MOBILE LIMITED | Kilitch Drugs vs. Reliance Communications 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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