Correlation Between JTL Industries and Steelcast

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both JTL Industries and Steelcast at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JTL Industries and Steelcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JTL Industries and Steelcast Limited, you can compare the effects of market volatilities on JTL Industries and Steelcast 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 JTL Industries with a short position of Steelcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of JTL Industries and Steelcast.

Diversification Opportunities for JTL Industries and Steelcast

-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between JTL and Steelcast is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding JTL Industries and Steelcast Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcast Limited and JTL Industries 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 JTL Industries are associated (or correlated) with Steelcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcast Limited has no effect on the direction of JTL Industries i.e., JTL Industries and Steelcast go up and down completely randomly.

Pair Corralation between JTL Industries and Steelcast

Assuming the 90 days trading horizon JTL Industries is expected to under-perform the Steelcast. In addition to that, JTL Industries is 4.19 times more volatile than Steelcast Limited. It trades about -0.19 of its total potential returns per unit of risk. Steelcast Limited is currently generating about 0.05 per unit of volatility. If you would invest  75,818  in Steelcast Limited on August 29, 2024 and sell it today you would earn a total of  1,627  from holding Steelcast Limited or generate 2.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

JTL Industries  vs.  Steelcast Limited

 Performance 
       Timeline  
JTL Industries 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JTL Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
Steelcast Limited 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Steelcast Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Steelcast sustained solid returns over the last few months and may actually be approaching a breakup point.

JTL Industries and Steelcast Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JTL Industries and Steelcast

The main advantage of trading using opposite JTL Industries and Steelcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JTL Industries position performs unexpectedly, Steelcast 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 Steelcast will offset losses from the drop in Steelcast's long position.
JTL Industries vs. Tata Steel Limited
JTL Industries vs. NMDC Steel Limited
JTL Industries vs. Visa Steel Limited
JTL Industries vs. Network18 Media Investments
The idea behind JTL Industries and Steelcast Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Steelcast vs. Embassy Office Parks
Steelcast vs. Gujarat Narmada Valley
Steelcast vs. Gujarat Alkalies and
Steelcast vs. JTL Industries
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Other Complementary Tools

Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Transaction History
View history of all your transactions and understand their impact on performance
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY