Correlation Between JGCHEMICALS and Shaily Engineering
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Shaily Engineering Plastics, you can compare the effects of market volatilities on JGCHEMICALS and Shaily Engineering 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 Shaily Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Shaily Engineering.
Diversification Opportunities for JGCHEMICALS and Shaily Engineering
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JGCHEMICALS and Shaily is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Shaily Engineering Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaily Engineering 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 Shaily Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaily Engineering has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Shaily Engineering go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Shaily Engineering
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 1.27 times more return on investment than Shaily Engineering. However, JGCHEMICALS is 1.27 times more volatile than Shaily Engineering Plastics. It trades about 0.12 of its potential returns per unit of risk. Shaily Engineering Plastics is currently generating about 0.14 per unit of risk. If you would invest 24,815 in JGCHEMICALS LIMITED on September 30, 2024 and sell it today you would earn a total of 16,170 from holding JGCHEMICALS LIMITED or generate 65.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Shaily Engineering Plastics
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Shaily Engineering |
JGCHEMICALS and Shaily Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Shaily Engineering
The main advantage of trading using opposite JGCHEMICALS and Shaily Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Shaily Engineering 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 Shaily Engineering will offset losses from the drop in Shaily Engineering's long position.| JGCHEMICALS vs. Hindustan Zinc Limited | JGCHEMICALS vs. Vedanta Limited | JGCHEMICALS vs. MOIL Limited | JGCHEMICALS vs. The Orissa Minerals |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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