Correlation Between JGCHEMICALS and Mahamaya Steel
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Mahamaya Steel Industries, you can compare the effects of market volatilities on JGCHEMICALS and Mahamaya Steel 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 Mahamaya Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Mahamaya Steel.
Diversification Opportunities for JGCHEMICALS and Mahamaya Steel
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JGCHEMICALS and Mahamaya is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Mahamaya Steel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahamaya Steel Industries 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 Mahamaya Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahamaya Steel Industries has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Mahamaya Steel go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Mahamaya Steel
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 2.53 times more return on investment than Mahamaya Steel. However, JGCHEMICALS is 2.53 times more volatile than Mahamaya Steel Industries. It trades about 0.22 of its potential returns per unit of risk. Mahamaya Steel Industries is currently generating about -0.11 per unit of risk. If you would invest 35,550 in JGCHEMICALS LIMITED on September 4, 2024 and sell it today you would earn a total of 8,455 from holding JGCHEMICALS LIMITED or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Mahamaya Steel Industries
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Mahamaya Steel Industries |
JGCHEMICALS and Mahamaya Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Mahamaya Steel
The main advantage of trading using opposite JGCHEMICALS and Mahamaya Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Mahamaya Steel 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 Mahamaya Steel will offset losses from the drop in Mahamaya Steel's long position.| JGCHEMICALS vs. Hindustan Zinc Limited | JGCHEMICALS vs. Vedanta Limited | JGCHEMICALS vs. MOIL Limited | JGCHEMICALS vs. The Orissa Minerals |
| Mahamaya Steel vs. Thirumalai Chemicals Limited | Mahamaya Steel vs. V Mart Retail Limited | Mahamaya Steel vs. JGCHEMICALS LIMITED | Mahamaya Steel 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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