Correlation Between JM Financial and Global Health
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By analyzing existing cross correlation between JM Financial Limited and Global Health Limited, you can compare the effects of market volatilities on JM Financial and Global Health 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 Global Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of JM Financial and Global Health.
Diversification Opportunities for JM Financial and Global Health
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JMFINANCIL and Global is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding JM Financial Limited and Global Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Health Limited 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 Global Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Health Limited has no effect on the direction of JM Financial i.e., JM Financial and Global Health go up and down completely randomly.
Pair Corralation between JM Financial and Global Health
Assuming the 90 days trading horizon JM Financial Limited is expected to under-perform the Global Health. In addition to that, JM Financial is 1.31 times more volatile than Global Health Limited. It trades about -0.05 of its total potential returns per unit of risk. Global Health Limited is currently generating about 0.08 per unit of volatility. If you would invest 107,270 in Global Health Limited on August 29, 2024 and sell it today you would earn a total of 2,950 from holding Global Health Limited or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JM Financial Limited vs. Global Health Limited
Performance |
| Timeline |
| JM Financial Limited |
| Global Health Limited |
JM Financial and Global Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JM Financial and Global Health
The main advantage of trading using opposite JM Financial and Global Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JM Financial position performs unexpectedly, Global Health 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 Global Health will offset losses from the drop in Global Health's long position.| JM Financial vs. DMCC SPECIALITY CHEMICALS | JM Financial vs. Tata Chemicals Limited | JM Financial vs. Shemaroo Entertainment Limited | JM Financial vs. Kanoria Chemicals Industries |
| Global Health vs. Indian Railway Finance | Global Health vs. Cholamandalam Financial Holdings | Global Health vs. Reliance Industries Limited | Global Health 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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