Correlation Between JSW Steel and Can Fin
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By analyzing existing cross correlation between JSW Steel Limited and Can Fin Homes, you can compare the effects of market volatilities on JSW Steel and Can Fin 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 Steel with a short position of Can Fin. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Steel and Can Fin.
Diversification Opportunities for JSW Steel and Can Fin
Average diversification
The 3 months correlation between JSW and Can is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding JSW Steel Limited and Can Fin Homes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Can Fin Homes and JSW Steel 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 Steel Limited are associated (or correlated) with Can Fin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Can Fin Homes has no effect on the direction of JSW Steel i.e., JSW Steel and Can Fin go up and down completely randomly.
Pair Corralation between JSW Steel and Can Fin
Assuming the 90 days trading horizon JSW Steel Limited is expected to generate 1.64 times more return on investment than Can Fin. However, JSW Steel is 1.64 times more volatile than Can Fin Homes. It trades about 0.02 of its potential returns per unit of risk. Can Fin Homes is currently generating about -0.23 per unit of risk. If you would invest 96,365 in JSW Steel Limited on September 1, 2024 and sell it today you would earn a total of 235.00 from holding JSW Steel Limited or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JSW Steel Limited vs. Can Fin Homes
Performance |
| Timeline |
| JSW Steel Limited |
| Can Fin Homes |
JSW Steel and Can Fin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSW Steel and Can Fin
The main advantage of trading using opposite JSW Steel and Can Fin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Steel position performs unexpectedly, Can Fin 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 Can Fin will offset losses from the drop in Can Fin's long position.| JSW Steel vs. NMDC Limited | JSW Steel vs. Steel Authority of | JSW Steel vs. Embassy Office Parks | JSW Steel vs. Gujarat Narmada Valley |
| Can Fin vs. Lemon Tree Hotels | Can Fin vs. Manaksia Coated Metals | Can Fin vs. EIH Associated Hotels | Can Fin vs. Action Construction Equipment |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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