Correlation Between JSW Holdings and Electrosteel Castings
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By analyzing existing cross correlation between JSW Holdings Limited and Electrosteel Castings Limited, you can compare the effects of market volatilities on JSW Holdings and Electrosteel Castings 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 Electrosteel Castings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Holdings and Electrosteel Castings.
Diversification Opportunities for JSW Holdings and Electrosteel Castings
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JSW and Electrosteel is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding JSW Holdings Limited and Electrosteel Castings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrosteel Castings 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 Electrosteel Castings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrosteel Castings has no effect on the direction of JSW Holdings i.e., JSW Holdings and Electrosteel Castings go up and down completely randomly.
Pair Corralation between JSW Holdings and Electrosteel Castings
Assuming the 90 days trading horizon JSW Holdings Limited is expected to generate 2.2 times more return on investment than Electrosteel Castings. However, JSW Holdings is 2.2 times more volatile than Electrosteel Castings Limited. It trades about 0.39 of its potential returns per unit of risk. Electrosteel Castings Limited is currently generating about -0.23 per unit of risk. If you would invest 960,335 in JSW Holdings Limited on August 28, 2024 and sell it today you would earn a total of 623,925 from holding JSW Holdings Limited or generate 64.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSW Holdings Limited vs. Electrosteel Castings Limited
Performance |
| Timeline |
| JSW Holdings Limited |
| Electrosteel Castings |
JSW Holdings and Electrosteel Castings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Holdings and Electrosteel Castings
The main advantage of trading using opposite JSW Holdings and Electrosteel Castings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Holdings position performs unexpectedly, Electrosteel Castings 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 Electrosteel Castings will offset losses from the drop in Electrosteel Castings' long position.| JSW Holdings vs. Kingfa Science Technology | JSW Holdings vs. Rico Auto Industries | JSW Holdings vs. GACM Technologies Limited | JSW Holdings vs. COSMO FIRST LIMITED |
| Electrosteel Castings vs. NMDC Limited | Electrosteel Castings vs. Steel Authority of | Electrosteel Castings vs. Embassy Office Parks | Electrosteel Castings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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