Correlation Between JSW Holdings and Sterling
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By analyzing existing cross correlation between JSW Holdings Limited and Sterling and Wilson, you can compare the effects of market volatilities on JSW Holdings and Sterling 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 Sterling. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Holdings and Sterling.
Diversification Opportunities for JSW Holdings and Sterling
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JSW and Sterling is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding JSW Holdings Limited and Sterling and Wilson in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling and Wilson 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 Sterling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling and Wilson has no effect on the direction of JSW Holdings i.e., JSW Holdings and Sterling go up and down completely randomly.
Pair Corralation between JSW Holdings and Sterling
Assuming the 90 days trading horizon JSW Holdings Limited is expected to generate 1.2 times more return on investment than Sterling. However, JSW Holdings is 1.2 times more volatile than Sterling and Wilson. It trades about 0.14 of its potential returns per unit of risk. Sterling and Wilson is currently generating about -0.07 per unit of risk. If you would invest 586,740 in JSW Holdings Limited on November 5, 2024 and sell it today you would earn a total of 1,104,485 from holding JSW Holdings Limited or generate 188.24% 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. Sterling and Wilson
Performance |
| Timeline |
| JSW Holdings Limited |
| Sterling and Wilson |
JSW Holdings and Sterling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Holdings and Sterling
The main advantage of trading using opposite JSW Holdings and Sterling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Holdings position performs unexpectedly, Sterling 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 Sterling will offset losses from the drop in Sterling's long position.| JSW Holdings vs. FCS Software Solutions | JSW Holdings vs. Electronics Mart India | JSW Holdings vs. Golden Tobacco Limited | JSW Holdings vs. Dev Information Technology |
| Sterling vs. Radaan Mediaworks India | Sterling vs. Jaypee Infratech Limited | Sterling vs. Shemaroo Entertainment Limited | Sterling vs. Hathway Cable Datacom |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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