Correlation Between JM Financial and Mahamaya Steel
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By analyzing existing cross correlation between JM Financial Limited and Mahamaya Steel Industries, you can compare the effects of market volatilities on JM Financial and Mahamaya Steel 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 Mahamaya Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of JM Financial and Mahamaya Steel.
Diversification Opportunities for JM Financial and Mahamaya Steel
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JMFINANCIL and Mahamaya is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding JM Financial Limited and Mahamaya Steel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahamaya Steel Industries 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 Mahamaya Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahamaya Steel Industries has no effect on the direction of JM Financial i.e., JM Financial and Mahamaya Steel go up and down completely randomly.
Pair Corralation between JM Financial and Mahamaya Steel
Assuming the 90 days trading horizon JM Financial Limited is expected to under-perform the Mahamaya Steel. In addition to that, JM Financial is 1.19 times more volatile than Mahamaya Steel Industries. It trades about -0.05 of its total potential returns per unit of risk. Mahamaya Steel Industries is currently generating about 0.15 per unit of volatility. If you would invest 20,773 in Mahamaya Steel Industries on August 27, 2024 and sell it today you would earn a total of 1,205 from holding Mahamaya Steel Industries or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JM Financial Limited vs. Mahamaya Steel Industries
Performance |
| Timeline |
| JM Financial Limited |
| Mahamaya Steel Industries |
JM Financial and Mahamaya Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JM Financial and Mahamaya Steel
The main advantage of trading using opposite JM Financial and Mahamaya Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JM Financial position performs unexpectedly, Mahamaya Steel 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 Mahamaya Steel will offset losses from the drop in Mahamaya Steel's long position.| JM Financial vs. Kingfa Science Technology | JM Financial vs. Rico Auto Industries | JM Financial vs. GACM Technologies Limited | JM Financial vs. COSMO FIRST LIMITED |
| Mahamaya Steel vs. NMDC Limited | Mahamaya Steel vs. Steel Authority of | Mahamaya Steel vs. Embassy Office Parks | Mahamaya Steel vs. Gujarat Narmada Valley |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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