Correlation Between JGCHEMICALS and V2 Retail
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and V2 Retail Limited, you can compare the effects of market volatilities on JGCHEMICALS and V2 Retail 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 V2 Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and V2 Retail.
Diversification Opportunities for JGCHEMICALS and V2 Retail
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between JGCHEMICALS and V2RETAIL is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and V2 Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V2 Retail 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 V2 Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V2 Retail Limited has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and V2 Retail go up and down completely randomly.
Pair Corralation between JGCHEMICALS and V2 Retail
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 1.64 times more return on investment than V2 Retail. However, JGCHEMICALS is 1.64 times more volatile than V2 Retail Limited. It trades about 0.24 of its potential returns per unit of risk. V2 Retail Limited is currently generating about 0.26 per unit of risk. If you would invest 34,305 in JGCHEMICALS LIMITED on September 1, 2024 and sell it today you would earn a total of 9,200 from holding JGCHEMICALS LIMITED or generate 26.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JGCHEMICALS LIMITED vs. V2 Retail Limited
Performance |
| Timeline |
| JGCHEMICALS LIMITED |
| V2 Retail Limited |
JGCHEMICALS and V2 Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JGCHEMICALS and V2 Retail
The main advantage of trading using opposite JGCHEMICALS and V2 Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, V2 Retail 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 V2 Retail will offset losses from the drop in V2 Retail's long position.| JGCHEMICALS vs. Privi Speciality Chemicals | JGCHEMICALS vs. Kamat Hotels Limited | JGCHEMICALS vs. TECIL Chemicals and | JGCHEMICALS vs. Juniper Hotels |
| V2 Retail vs. Indian Railway Finance | V2 Retail vs. Cholamandalam Financial Holdings | V2 Retail vs. Reliance Industries Limited | V2 Retail vs. Tata Consultancy 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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