Correlation Between Jindal Steel and Cartrade Tech
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By analyzing existing cross correlation between Jindal Steel Power and Cartrade Tech Limited, you can compare the effects of market volatilities on Jindal Steel and Cartrade Tech 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 Jindal Steel with a short position of Cartrade Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindal Steel and Cartrade Tech.
Diversification Opportunities for Jindal Steel and Cartrade Tech
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jindal and Cartrade is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Steel Power and Cartrade Tech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartrade Tech Limited and Jindal Steel 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 Jindal Steel Power are associated (or correlated) with Cartrade Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartrade Tech Limited has no effect on the direction of Jindal Steel i.e., Jindal Steel and Cartrade Tech go up and down completely randomly.
Pair Corralation between Jindal Steel and Cartrade Tech
Assuming the 90 days trading horizon Jindal Steel is expected to generate 5.21 times less return on investment than Cartrade Tech. But when comparing it to its historical volatility, Jindal Steel Power is 2.06 times less risky than Cartrade Tech. It trades about 0.05 of its potential returns per unit of risk. Cartrade Tech Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 136,775 in Cartrade Tech Limited on November 28, 2024 and sell it today you would earn a total of 13,095 from holding Cartrade Tech Limited or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jindal Steel Power vs. Cartrade Tech Limited
Performance |
| Timeline |
| Jindal Steel Power |
| Cartrade Tech Limited |
Jindal Steel and Cartrade Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jindal Steel and Cartrade Tech
The main advantage of trading using opposite Jindal Steel and Cartrade Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindal Steel position performs unexpectedly, Cartrade Tech 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 Cartrade Tech will offset losses from the drop in Cartrade Tech's long position.| Jindal Steel vs. Gujarat Lease Financing | Jindal Steel vs. Elgi Rubber | Jindal Steel vs. Teamlease Services Limited | Jindal Steel vs. Modi Rubber Limited |
| Cartrade Tech vs. United Breweries Limited | Cartrade Tech vs. Clean Science and | Cartrade Tech vs. HDFC Asset Management | Cartrade Tech vs. Varun Beverages Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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