Correlation Between Jindal Steel and Hisar Metal
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By analyzing existing cross correlation between Jindal Steel Power and Hisar Metal Industries, you can compare the effects of market volatilities on Jindal Steel and Hisar Metal 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 Hisar Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindal Steel and Hisar Metal.
Diversification Opportunities for Jindal Steel and Hisar Metal
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jindal and Hisar is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Steel Power and Hisar Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisar Metal Industries 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 Hisar Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisar Metal Industries has no effect on the direction of Jindal Steel i.e., Jindal Steel and Hisar Metal go up and down completely randomly.
Pair Corralation between Jindal Steel and Hisar Metal
Assuming the 90 days trading horizon Jindal Steel Power is expected to generate 0.82 times more return on investment than Hisar Metal. However, Jindal Steel Power is 1.22 times less risky than Hisar Metal. It trades about -0.03 of its potential returns per unit of risk. Hisar Metal Industries is currently generating about -0.12 per unit of risk. If you would invest 91,900 in Jindal Steel Power on September 1, 2024 and sell it today you would lose (1,255) from holding Jindal Steel Power or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jindal Steel Power vs. Hisar Metal Industries
Performance |
| Timeline |
| Jindal Steel Power |
| Hisar Metal Industries |
Jindal Steel and Hisar Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jindal Steel and Hisar Metal
The main advantage of trading using opposite Jindal Steel and Hisar Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindal Steel position performs unexpectedly, Hisar Metal 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 Hisar Metal will offset losses from the drop in Hisar Metal's long position.| Jindal Steel vs. LT Foods Limited | Jindal Steel vs. Network18 Media Investments | Jindal Steel vs. AUTHUM INVESTMENT INFRASTRUCTU | Jindal Steel vs. Sarveshwar Foods Limited |
| Hisar Metal vs. Future Retail Limited | Hisar Metal vs. Metalyst Forgings Limited | Hisar Metal vs. Akme Fintrade India | Hisar Metal vs. Total Transport Systems |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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