Correlation Between JSW Holdings and Megastar Foods
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By analyzing existing cross correlation between JSW Holdings Limited and Megastar Foods Limited, you can compare the effects of market volatilities on JSW Holdings and Megastar Foods 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 Megastar Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Holdings and Megastar Foods.
Diversification Opportunities for JSW Holdings and Megastar Foods
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JSW and Megastar is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding JSW Holdings Limited and Megastar Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megastar Foods 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 Megastar Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megastar Foods has no effect on the direction of JSW Holdings i.e., JSW Holdings and Megastar Foods go up and down completely randomly.
Pair Corralation between JSW Holdings and Megastar Foods
Assuming the 90 days trading horizon JSW Holdings Limited is expected to generate 1.14 times more return on investment than Megastar Foods. However, JSW Holdings is 1.14 times more volatile than Megastar Foods Limited. It trades about 0.13 of its potential returns per unit of risk. Megastar Foods Limited is currently generating about -0.02 per unit of risk. If you would invest 490,030 in JSW Holdings Limited on August 29, 2024 and sell it today you would earn a total of 1,015,020 from holding JSW Holdings Limited or generate 207.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSW Holdings Limited vs. Megastar Foods Limited
Performance |
| Timeline |
| JSW Holdings Limited |
| Megastar Foods |
JSW Holdings and Megastar Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Holdings and Megastar Foods
The main advantage of trading using opposite JSW Holdings and Megastar Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Holdings position performs unexpectedly, Megastar Foods 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 Megastar Foods will offset losses from the drop in Megastar Foods' long position.| JSW Holdings vs. Tamilnadu Telecommunication Limited | JSW Holdings vs. Niraj Ispat Industries | JSW Holdings vs. Reliance Communications Limited | JSW Holdings vs. Coffee Day Enterprises |
| Megastar Foods vs. Melstar Information Technologies | Megastar Foods vs. Consolidated Construction Consortium | Megastar Foods vs. Biofil Chemicals Pharmaceuticals | Megastar Foods vs. India Glycols 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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