Correlation Between JSW Holdings and Mindteck
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By analyzing existing cross correlation between JSW Holdings Limited and Mindteck Limited, you can compare the effects of market volatilities on JSW Holdings and Mindteck 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 Mindteck. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Holdings and Mindteck.
Diversification Opportunities for JSW Holdings and Mindteck
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JSW and Mindteck is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding JSW Holdings Limited and Mindteck Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mindteck Limited 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 Mindteck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mindteck Limited has no effect on the direction of JSW Holdings i.e., JSW Holdings and Mindteck go up and down completely randomly.
Pair Corralation between JSW Holdings and Mindteck
Assuming the 90 days trading horizon JSW Holdings Limited is expected to under-perform the Mindteck. But the stock apears to be less risky and, when comparing its historical volatility, JSW Holdings Limited is 1.65 times less risky than Mindteck. The stock trades about -0.32 of its potential returns per unit of risk. The Mindteck Limited is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 23,955 in Mindteck Limited on September 16, 2024 and sell it today you would earn a total of 5,440 from holding Mindteck Limited or generate 22.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSW Holdings Limited vs. Mindteck Limited
Performance |
| Timeline |
| JSW Holdings Limited |
| Mindteck Limited |
JSW Holdings and Mindteck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Holdings and Mindteck
The main advantage of trading using opposite JSW Holdings and Mindteck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Holdings position performs unexpectedly, Mindteck 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 Mindteck will offset losses from the drop in Mindteck's long position.| JSW Holdings vs. Yes Bank Limited | JSW Holdings vs. Kingfa Science Technology | JSW Holdings vs. Rico Auto Industries | JSW Holdings vs. GACM Technologies Limited |
| Mindteck vs. Vodafone Idea Limited | Mindteck vs. Yes Bank Limited | Mindteck vs. Indian Overseas Bank | Mindteck vs. Indian Oil |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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