Correlation Between JM Financial and AUTHUM INVESTMENT
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By analyzing existing cross correlation between JM Financial Limited and AUTHUM INVESTMENT INFRASTRUCTU, you can compare the effects of market volatilities on JM Financial and AUTHUM INVESTMENT 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 JM Financial with a short position of AUTHUM INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of JM Financial and AUTHUM INVESTMENT.
Diversification Opportunities for JM Financial and AUTHUM INVESTMENT
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JMFINANCIL and AUTHUM is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding JM Financial Limited and AUTHUM INVESTMENT INFRASTRUCTU in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUTHUM INVESTMENT and JM Financial 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 JM Financial Limited are associated (or correlated) with AUTHUM INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUTHUM INVESTMENT has no effect on the direction of JM Financial i.e., JM Financial and AUTHUM INVESTMENT go up and down completely randomly.
Pair Corralation between JM Financial and AUTHUM INVESTMENT
Assuming the 90 days trading horizon JM Financial is expected to generate 1.75 times less return on investment than AUTHUM INVESTMENT. But when comparing it to its historical volatility, JM Financial Limited is 1.17 times less risky than AUTHUM INVESTMENT. It trades about 0.08 of its potential returns per unit of risk. AUTHUM INVESTMENT INFRASTRUCTU is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 92,620 in AUTHUM INVESTMENT INFRASTRUCTU on September 1, 2024 and sell it today you would earn a total of 65,455 from holding AUTHUM INVESTMENT INFRASTRUCTU or generate 70.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 57.58% |
Values | Daily Returns |
JM Financial Limited vs. AUTHUM INVESTMENT INFRASTRUCTU
Performance |
Timeline |
JM Financial Limited |
AUTHUM INVESTMENT |
JM Financial and AUTHUM INVESTMENT Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JM Financial and AUTHUM INVESTMENT
The main advantage of trading using opposite JM Financial and AUTHUM INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JM Financial position performs unexpectedly, AUTHUM INVESTMENT 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 AUTHUM INVESTMENT will offset losses from the drop in AUTHUM INVESTMENT's long position.JM Financial vs. Nalwa Sons Investments | JM Financial vs. Kalyani Investment | JM Financial vs. Pilani Investment and | JM Financial vs. Vardhman Holdings Limited |
AUTHUM INVESTMENT vs. Motilal Oswal Financial | AUTHUM INVESTMENT vs. Tata Investment | AUTHUM INVESTMENT vs. Indian Energy Exchange | AUTHUM INVESTMENT vs. JM Financial 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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