Correlation Between Jubilant Foodworks and Maithan Alloys
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jubilant Foodworks Limited and Maithan Alloys Limited, you can compare the effects of market volatilities on Jubilant Foodworks and Maithan Alloys 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 Maithan Alloys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilant Foodworks and Maithan Alloys.
Diversification Opportunities for Jubilant Foodworks and Maithan Alloys
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jubilant and Maithan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jubilant Foodworks Limited and Maithan Alloys Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maithan Alloys 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 Maithan Alloys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maithan Alloys has no effect on the direction of Jubilant Foodworks i.e., Jubilant Foodworks and Maithan Alloys go up and down completely randomly.
Pair Corralation between Jubilant Foodworks and Maithan Alloys
Assuming the 90 days trading horizon Jubilant Foodworks Limited is expected to generate 1.06 times more return on investment than Maithan Alloys. However, Jubilant Foodworks is 1.06 times more volatile than Maithan Alloys Limited. It trades about 0.38 of its potential returns per unit of risk. Maithan Alloys Limited is currently generating about 0.26 per unit of risk. If you would invest 60,200 in Jubilant Foodworks Limited on September 12, 2024 and sell it today you would earn a total of 10,580 from holding Jubilant Foodworks Limited or generate 17.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jubilant Foodworks Limited vs. Maithan Alloys Limited
Performance |
| Timeline |
| Jubilant Foodworks |
| Maithan Alloys |
Jubilant Foodworks and Maithan Alloys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilant Foodworks and Maithan Alloys
The main advantage of trading using opposite Jubilant Foodworks and Maithan Alloys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilant Foodworks position performs unexpectedly, Maithan Alloys 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 Maithan Alloys will offset losses from the drop in Maithan Alloys' long position.| Jubilant Foodworks vs. Hemisphere Properties India | Jubilant Foodworks vs. Indo Borax Chemicals | Jubilant Foodworks vs. Kingfa Science Technology | Jubilant Foodworks vs. Alkali Metals Limited |
| Maithan Alloys vs. Garuda Construction Engineering | Maithan Alloys vs. WESTLIFE FOODWORLD LIMITED | Maithan Alloys vs. Agro Tech Foods | Maithan Alloys vs. Mrs Bectors Food |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |