Correlation Between JGCHEMICALS and Oil Natural
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Oil Natural Gas, you can compare the effects of market volatilities on JGCHEMICALS and Oil Natural 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 Oil Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Oil Natural.
Diversification Opportunities for JGCHEMICALS and Oil Natural
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JGCHEMICALS and Oil is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Oil Natural Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Natural Gas 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 Oil Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Natural Gas has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Oil Natural go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Oil Natural
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to under-perform the Oil Natural. In addition to that, JGCHEMICALS is 1.03 times more volatile than Oil Natural Gas. It trades about -0.3 of its total potential returns per unit of risk. Oil Natural Gas is currently generating about 0.23 per unit of volatility. If you would invest 24,085 in Oil Natural Gas on October 24, 2024 and sell it today you would earn a total of 2,495 from holding Oil Natural Gas or generate 10.36% 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. Oil Natural Gas
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Oil Natural Gas |
JGCHEMICALS and Oil Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Oil Natural
The main advantage of trading using opposite JGCHEMICALS and Oil Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Oil Natural 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 Oil Natural will offset losses from the drop in Oil Natural's long position.| JGCHEMICALS vs. Hindustan Zinc Limited | JGCHEMICALS vs. MOIL Limited | JGCHEMICALS vs. The Orissa Minerals | JGCHEMICALS vs. 20 Microns Limited |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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