Correlation Between JGCHEMICALS and Sterling
Specify exactly 2 symbols:
By analyzing existing cross correlation between JGCHEMICALS LIMITED and Sterling and Wilson, you can compare the effects of market volatilities on JGCHEMICALS and Sterling 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 Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Sterling.
Diversification Opportunities for JGCHEMICALS and Sterling
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JGCHEMICALS and Sterling is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Sterling and Wilson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling and Wilson 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 Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling and Wilson has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Sterling go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Sterling
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 1.46 times more return on investment than Sterling. However, JGCHEMICALS is 1.46 times more volatile than Sterling and Wilson. It trades about 0.11 of its potential returns per unit of risk. Sterling and Wilson is currently generating about 0.05 per unit of risk. If you would invest 18,480 in JGCHEMICALS LIMITED on October 11, 2024 and sell it today you would earn a total of 20,300 from holding JGCHEMICALS LIMITED or generate 109.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 41.8% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. Sterling and Wilson
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| Sterling and Wilson |
JGCHEMICALS and Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and Sterling
The main advantage of trading using opposite JGCHEMICALS and Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Sterling 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 Sterling will offset losses from the drop in Sterling's long position.| JGCHEMICALS vs. Zuari Agro Chemicals | JGCHEMICALS vs. Action Construction Equipment | JGCHEMICALS vs. Fertilizers and Chemicals | JGCHEMICALS vs. Shree Pushkar Chemicals |
| Sterling vs. ICICI Bank Limited | Sterling vs. The Federal Bank | Sterling vs. Sportking India Limited | Sterling vs. DCM Financial Services |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |