Correlation Between Jubilant Foodworks and ZF Commercial
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By analyzing existing cross correlation between Jubilant Foodworks Limited and ZF Commercial Vehicle, you can compare the effects of market volatilities on Jubilant Foodworks and ZF Commercial 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 ZF Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilant Foodworks and ZF Commercial.
Diversification Opportunities for Jubilant Foodworks and ZF Commercial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jubilant and ZFCVINDIA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jubilant Foodworks Limited and ZF Commercial Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZF Commercial Vehicle 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 ZF Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZF Commercial Vehicle has no effect on the direction of Jubilant Foodworks i.e., Jubilant Foodworks and ZF Commercial go up and down completely randomly.
Pair Corralation between Jubilant Foodworks and ZF Commercial
Assuming the 90 days trading horizon Jubilant Foodworks is expected to generate 1.43 times less return on investment than ZF Commercial. But when comparing it to its historical volatility, Jubilant Foodworks Limited is 1.3 times less risky than ZF Commercial. It trades about 0.03 of its potential returns per unit of risk. ZF Commercial Vehicle is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 930,437 in ZF Commercial Vehicle on September 3, 2024 and sell it today you would earn a total of 317,923 from holding ZF Commercial Vehicle or generate 34.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Jubilant Foodworks Limited vs. ZF Commercial Vehicle
Performance |
| Timeline |
| Jubilant Foodworks |
| ZF Commercial Vehicle |
Jubilant Foodworks and ZF Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilant Foodworks and ZF Commercial
The main advantage of trading using opposite Jubilant Foodworks and ZF Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilant Foodworks position performs unexpectedly, ZF Commercial 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 ZF Commercial will offset losses from the drop in ZF Commercial's long position.| Jubilant Foodworks vs. Bajaj Holdings Investment | Jubilant Foodworks vs. Shipping | Jubilant Foodworks vs. Indo Borax Chemicals | Jubilant Foodworks vs. Kingfa Science Technology |
| ZF Commercial vs. Bajaj Holdings Investment | ZF Commercial vs. Shipping | ZF Commercial vs. Indo Borax Chemicals | ZF Commercial vs. Kingfa Science Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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