Correlation Between Jindal Poly and Prakash Steelage
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By analyzing existing cross correlation between Jindal Poly Investment and Prakash Steelage Limited, you can compare the effects of market volatilities on Jindal Poly and Prakash Steelage 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 Poly with a short position of Prakash Steelage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindal Poly and Prakash Steelage.
Diversification Opportunities for Jindal Poly and Prakash Steelage
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jindal and Prakash is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Poly Investment and Prakash Steelage Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prakash Steelage and Jindal Poly 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 Poly Investment are associated (or correlated) with Prakash Steelage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prakash Steelage has no effect on the direction of Jindal Poly i.e., Jindal Poly and Prakash Steelage go up and down completely randomly.
Pair Corralation between Jindal Poly and Prakash Steelage
Assuming the 90 days trading horizon Jindal Poly Investment is expected to generate 1.1 times more return on investment than Prakash Steelage. However, Jindal Poly is 1.1 times more volatile than Prakash Steelage Limited. It trades about 0.04 of its potential returns per unit of risk. Prakash Steelage Limited is currently generating about -0.08 per unit of risk. If you would invest 62,950 in Jindal Poly Investment on November 9, 2024 and sell it today you would earn a total of 12,630 from holding Jindal Poly Investment or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jindal Poly Investment vs. Prakash Steelage Limited
Performance |
| Timeline |
| Jindal Poly Investment |
| Prakash Steelage |
Jindal Poly and Prakash Steelage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jindal Poly and Prakash Steelage
The main advantage of trading using opposite Jindal Poly and Prakash Steelage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindal Poly position performs unexpectedly, Prakash Steelage 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 Prakash Steelage will offset losses from the drop in Prakash Steelage's long position.| Jindal Poly vs. Oriental Hotels Limited | Jindal Poly vs. Cartrade Tech Limited | Jindal Poly vs. Taj GVK Hotels | Jindal Poly vs. Baazar Style Retail |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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