Correlation Between JSW Holdings and Mahamaya Steel
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By analyzing existing cross correlation between JSW Holdings Limited and Mahamaya Steel Industries, you can compare the effects of market volatilities on JSW Holdings 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 JSW Holdings with a short position of Mahamaya Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Holdings and Mahamaya Steel.
Diversification Opportunities for JSW Holdings and Mahamaya Steel
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JSW and Mahamaya is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding JSW Holdings 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 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 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 JSW Holdings i.e., JSW Holdings and Mahamaya Steel go up and down completely randomly.
Pair Corralation between JSW Holdings and Mahamaya Steel
Assuming the 90 days trading horizon JSW Holdings Limited is expected to under-perform the Mahamaya Steel. In addition to that, JSW Holdings is 1.75 times more volatile than Mahamaya Steel Industries. It trades about -0.17 of its total potential returns per unit of risk. Mahamaya Steel Industries is currently generating about -0.14 per unit of volatility. If you would invest 21,996 in Mahamaya Steel Industries on September 12, 2024 and sell it today you would lose (1,478) from holding Mahamaya Steel Industries or give up 6.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSW Holdings Limited vs. Mahamaya Steel Industries
Performance |
| Timeline |
| JSW Holdings Limited |
| Mahamaya Steel Industries |
JSW Holdings and Mahamaya Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Holdings and Mahamaya Steel
The main advantage of trading using opposite JSW Holdings and Mahamaya Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Holdings 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.| JSW Holdings vs. Blue Coast Hotels | JSW Holdings vs. SINCLAIRS HOTELS ORD | JSW Holdings vs. Samhi Hotels Limited | JSW Holdings vs. Lemon Tree Hotels |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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