Correlation Between JSW Holdings and Can Fin
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By analyzing existing cross correlation between JSW Holdings Limited and Can Fin Homes, you can compare the effects of market volatilities on JSW Holdings and Can Fin 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 JSW Holdings with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Holdings and Can Fin.
Diversification Opportunities for JSW Holdings and Can Fin
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JSW and Can is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding JSW Holdings Limited and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes and JSW Holdings 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 JSW Holdings Limited are associated (or correlated) with Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of JSW Holdings i.e., JSW Holdings and Can Fin go up and down completely randomly.
Pair Corralation between JSW Holdings and Can Fin
Assuming the 90 days trading horizon JSW Holdings Limited is expected to generate 5.56 times more return on investment than Can Fin. However, JSW Holdings is 5.56 times more volatile than Can Fin Homes. It trades about 0.3 of its potential returns per unit of risk. Can Fin Homes is currently generating about -0.15 per unit of risk. If you would invest 948,535 in JSW Holdings Limited on August 30, 2024 and sell it today you would earn a total of 481,485 from holding JSW Holdings Limited or generate 50.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
JSW Holdings Limited vs. Can Fin Homes
Performance |
| Timeline |
| JSW Holdings Limited |
| Can Fin Homes |
JSW Holdings and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Holdings and Can Fin
The main advantage of trading using opposite JSW Holdings and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Holdings position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.| JSW Holdings vs. Shree Pushkar Chemicals | JSW Holdings vs. Pondy Oxides Chemicals | JSW Holdings vs. Healthcare Global Enterprises | JSW Holdings vs. TECIL Chemicals and |
| Can Fin vs. MRF Limited | Can Fin vs. Bosch Limited | Can Fin vs. Bajaj Holdings Investment | Can Fin vs. Vardhman Holdings 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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