Correlation Between JGCHEMICALS and NIIT
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and NIIT Limited, you can compare the effects of market volatilities on JGCHEMICALS and NIIT 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 NIIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and NIIT.
Diversification Opportunities for JGCHEMICALS and NIIT
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JGCHEMICALS and NIIT is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and NIIT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIIT 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 NIIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIIT Limited has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and NIIT go up and down completely randomly.
Pair Corralation between JGCHEMICALS and NIIT
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 0.86 times more return on investment than NIIT. However, JGCHEMICALS LIMITED is 1.16 times less risky than NIIT. It trades about 0.13 of its potential returns per unit of risk. NIIT Limited is currently generating about 0.02 per unit of risk. If you would invest 18,480 in JGCHEMICALS LIMITED on September 20, 2024 and sell it today you would earn a total of 24,375 from holding JGCHEMICALS LIMITED or generate 131.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 39.01% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. NIIT Limited
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| NIIT Limited |
JGCHEMICALS and NIIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and NIIT
The main advantage of trading using opposite JGCHEMICALS and NIIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, NIIT 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 NIIT will offset losses from the drop in NIIT's long position.| JGCHEMICALS vs. Hindustan Zinc Limited | JGCHEMICALS vs. Vedanta Limited | JGCHEMICALS vs. The Orissa Minerals | JGCHEMICALS vs. Ashapura Minechem Limited |
| NIIT vs. Sudarshan Chemical Industries | NIIT vs. JGCHEMICALS LIMITED | NIIT vs. Network18 Media Investments | NIIT 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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