Correlation Between MIC Electronics and Jindal Steel
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By analyzing existing cross correlation between MIC Electronics Limited and Jindal Steel Power, you can compare the effects of market volatilities on MIC Electronics and Jindal Steel 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 MIC Electronics with a short position of Jindal Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIC Electronics and Jindal Steel.
Diversification Opportunities for MIC Electronics and Jindal Steel
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MIC and Jindal is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding MIC Electronics Limited and Jindal Steel Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindal Steel Power and MIC Electronics 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 MIC Electronics Limited are associated (or correlated) with Jindal Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindal Steel Power has no effect on the direction of MIC Electronics i.e., MIC Electronics and Jindal Steel go up and down completely randomly.
Pair Corralation between MIC Electronics and Jindal Steel
Assuming the 90 days trading horizon MIC Electronics Limited is expected to generate 1.75 times more return on investment than Jindal Steel. However, MIC Electronics is 1.75 times more volatile than Jindal Steel Power. It trades about 0.13 of its potential returns per unit of risk. Jindal Steel Power is currently generating about 0.06 per unit of risk. If you would invest 1,215 in MIC Electronics Limited on October 13, 2024 and sell it today you would earn a total of 6,851 from holding MIC Electronics Limited or generate 563.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
MIC Electronics Limited vs. Jindal Steel Power
Performance |
| Timeline |
| MIC Electronics |
| Jindal Steel Power |
MIC Electronics and Jindal Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIC Electronics and Jindal Steel
The main advantage of trading using opposite MIC Electronics and Jindal Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIC Electronics position performs unexpectedly, Jindal Steel 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 Jindal Steel will offset losses from the drop in Jindal Steel's long position.| MIC Electronics vs. Indo Rama Synthetics | MIC Electronics vs. Krebs Biochemicals and | MIC Electronics vs. Thirumalai Chemicals Limited | MIC Electronics vs. Sudarshan Chemical Industries |
| Jindal Steel vs. MIC Electronics Limited | Jindal Steel vs. R S Software | Jindal Steel vs. Salzer Electronics Limited | Jindal Steel vs. Cambridge Technology Enterprises |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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