Correlation Between JSW Holdings and Sasken Technologies
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By analyzing existing cross correlation between JSW Holdings Limited and Sasken Technologies Limited, you can compare the effects of market volatilities on JSW Holdings and Sasken Technologies 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 Sasken Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Holdings and Sasken Technologies.
Diversification Opportunities for JSW Holdings and Sasken Technologies
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JSW and Sasken is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding JSW Holdings Limited and Sasken Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasken Technologies 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 Sasken Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasken Technologies has no effect on the direction of JSW Holdings i.e., JSW Holdings and Sasken Technologies go up and down completely randomly.
Pair Corralation between JSW Holdings and Sasken Technologies
Assuming the 90 days trading horizon JSW Holdings Limited is expected to generate 1.08 times more return on investment than Sasken Technologies. However, JSW Holdings is 1.08 times more volatile than Sasken Technologies Limited. It trades about 0.12 of its potential returns per unit of risk. Sasken Technologies Limited is currently generating about 0.11 per unit of risk. If you would invest 435,805 in JSW Holdings Limited on September 2, 2024 and sell it today you would earn a total of 978,690 from holding JSW Holdings Limited or generate 224.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
JSW Holdings Limited vs. Sasken Technologies Limited
Performance |
| Timeline |
| JSW Holdings Limited |
| Sasken Technologies |
JSW Holdings and Sasken Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Holdings and Sasken Technologies
The main advantage of trading using opposite JSW Holdings and Sasken Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Holdings position performs unexpectedly, Sasken Technologies 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 Sasken Technologies will offset losses from the drop in Sasken Technologies' long position.| JSW Holdings vs. Metropolis Healthcare Limited | JSW Holdings vs. Fortis Healthcare Limited | JSW Holdings vs. Gallantt Ispat Limited | JSW Holdings vs. Procter Gamble Health |
| Sasken Technologies vs. Network18 Media Investments | Sasken Technologies vs. Touchwood Entertainment Limited | Sasken Technologies vs. SIL Investments Limited | Sasken Technologies vs. Nalwa Sons Investments |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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