Correlation Between Jubilant Foodworks and Styrenix Performance
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By analyzing existing cross correlation between Jubilant Foodworks Limited and Styrenix Performance Materials, you can compare the effects of market volatilities on Jubilant Foodworks and Styrenix Performance 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 Styrenix Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilant Foodworks and Styrenix Performance.
Diversification Opportunities for Jubilant Foodworks and Styrenix Performance
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jubilant and Styrenix is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jubilant Foodworks Limited and Styrenix Performance Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Styrenix Performance 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 Styrenix Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Styrenix Performance has no effect on the direction of Jubilant Foodworks i.e., Jubilant Foodworks and Styrenix Performance go up and down completely randomly.
Pair Corralation between Jubilant Foodworks and Styrenix Performance
Assuming the 90 days trading horizon Jubilant Foodworks Limited is expected to generate 1.38 times more return on investment than Styrenix Performance. However, Jubilant Foodworks is 1.38 times more volatile than Styrenix Performance Materials. It trades about 0.25 of its potential returns per unit of risk. Styrenix Performance Materials is currently generating about 0.03 per unit of risk. If you would invest 57,755 in Jubilant Foodworks Limited on September 2, 2024 and sell it today you would earn a total of 6,700 from holding Jubilant Foodworks Limited or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jubilant Foodworks Limited vs. Styrenix Performance Materials
Performance |
| Timeline |
| Jubilant Foodworks |
| Styrenix Performance |
Jubilant Foodworks and Styrenix Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilant Foodworks and Styrenix Performance
The main advantage of trading using opposite Jubilant Foodworks and Styrenix Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilant Foodworks position performs unexpectedly, Styrenix Performance 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 Styrenix Performance will offset losses from the drop in Styrenix Performance's long position.| Jubilant Foodworks vs. Reliance Home Finance | Jubilant Foodworks vs. Can Fin Homes | Jubilant Foodworks vs. Ortel Communications Limited | Jubilant Foodworks vs. EMBASSY OFFICE PARKS |
| Styrenix Performance vs. NMDC Limited | Styrenix Performance vs. Steel Authority of | Styrenix Performance vs. Embassy Office Parks | Styrenix Performance vs. Gujarat Narmada Valley |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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