Correlation Between Jubilant Foodworks and ADF Foods
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By analyzing existing cross correlation between Jubilant Foodworks Limited and ADF Foods Limited, you can compare the effects of market volatilities on Jubilant Foodworks and ADF Foods 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 Jubilant Foodworks with a short position of ADF Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilant Foodworks and ADF Foods.
Diversification Opportunities for Jubilant Foodworks and ADF Foods
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jubilant and ADF is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jubilant Foodworks Limited and ADF Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Foods Limited and Jubilant Foodworks 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 Jubilant Foodworks Limited are associated (or correlated) with ADF Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Foods Limited has no effect on the direction of Jubilant Foodworks i.e., Jubilant Foodworks and ADF Foods go up and down completely randomly.
Pair Corralation between Jubilant Foodworks and ADF Foods
Assuming the 90 days trading horizon Jubilant Foodworks Limited is expected to generate 0.91 times more return on investment than ADF Foods. However, Jubilant Foodworks Limited is 1.1 times less risky than ADF Foods. It trades about 0.19 of its potential returns per unit of risk. ADF Foods Limited is currently generating about 0.14 per unit of risk. If you would invest 58,550 in Jubilant Foodworks Limited on August 28, 2024 and sell it today you would earn a total of 4,725 from holding Jubilant Foodworks Limited or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jubilant Foodworks Limited vs. ADF Foods Limited
Performance |
| Timeline |
| Jubilant Foodworks |
| ADF Foods Limited |
Jubilant Foodworks and ADF Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilant Foodworks and ADF Foods
The main advantage of trading using opposite Jubilant Foodworks and ADF Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilant Foodworks position performs unexpectedly, ADF Foods 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 ADF Foods will offset losses from the drop in ADF Foods' long position.| Jubilant Foodworks vs. Shigan Quantum Tech | Jubilant Foodworks vs. Jaypee Infratech Limited | Jubilant Foodworks vs. Data Patterns Limited | Jubilant Foodworks vs. Arrow Greentech Limited |
| ADF Foods vs. Reliance Industries Limited | ADF Foods vs. State Bank of | ADF Foods vs. HDFC Bank Limited | ADF Foods vs. Oil Natural Gas |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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