Correlation Between Jubilant Foodworks and Selan Exploration
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jubilant Foodworks Limited and Selan Exploration Technology, you can compare the effects of market volatilities on Jubilant Foodworks and Selan Exploration 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 Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilant Foodworks and Selan Exploration.
Diversification Opportunities for Jubilant Foodworks and Selan Exploration
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jubilant and Selan is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jubilant Foodworks Limited and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration 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 Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Jubilant Foodworks i.e., Jubilant Foodworks and Selan Exploration go up and down completely randomly.
Pair Corralation between Jubilant Foodworks and Selan Exploration
Assuming the 90 days trading horizon Jubilant Foodworks Limited is expected to generate 0.54 times more return on investment than Selan Exploration. However, Jubilant Foodworks Limited is 1.86 times less risky than Selan Exploration. It trades about -0.07 of its potential returns per unit of risk. Selan Exploration Technology is currently generating about -0.14 per unit of risk. If you would invest 75,925 in Jubilant Foodworks Limited on November 8, 2024 and sell it today you would lose (3,420) from holding Jubilant Foodworks Limited or give up 4.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jubilant Foodworks Limited vs. Selan Exploration Technology
Performance |
| Timeline |
| Jubilant Foodworks |
| Selan Exploration |
Jubilant Foodworks and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilant Foodworks and Selan Exploration
The main advantage of trading using opposite Jubilant Foodworks and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilant Foodworks position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.| Jubilant Foodworks vs. Tata Consultancy Services | Jubilant Foodworks vs. Quess Corp Limited | Jubilant Foodworks vs. Reliance Industries Limited | Jubilant Foodworks vs. Infosys Limited |
| Selan Exploration vs. Sintex Plastics Technology | Selan Exploration vs. R S Software | Selan Exploration vs. ideaForge Technology Limited | Selan Exploration vs. Hindware Home Innovation |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |