Correlation Between MIC Electronics and Jubilant Foodworks
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By analyzing existing cross correlation between MIC Electronics Limited and Jubilant Foodworks Limited, you can compare the effects of market volatilities on MIC Electronics and Jubilant Foodworks 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 Jubilant Foodworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIC Electronics and Jubilant Foodworks.
Diversification Opportunities for MIC Electronics and Jubilant Foodworks
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MIC and Jubilant is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MIC Electronics Limited and Jubilant Foodworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilant Foodworks 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 Jubilant Foodworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jubilant Foodworks has no effect on the direction of MIC Electronics i.e., MIC Electronics and Jubilant Foodworks go up and down completely randomly.
Pair Corralation between MIC Electronics and Jubilant Foodworks
Assuming the 90 days trading horizon MIC Electronics Limited is expected to under-perform the Jubilant Foodworks. But the stock apears to be less risky and, when comparing its historical volatility, MIC Electronics Limited is 1.08 times less risky than Jubilant Foodworks. The stock trades about -0.21 of its potential returns per unit of risk. The Jubilant Foodworks Limited is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 57,600 in Jubilant Foodworks Limited on September 1, 2024 and sell it today you would earn a total of 6,855 from holding Jubilant Foodworks Limited or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
MIC Electronics Limited vs. Jubilant Foodworks Limited
Performance |
| Timeline |
| MIC Electronics |
| Jubilant Foodworks |
MIC Electronics and Jubilant Foodworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIC Electronics and Jubilant Foodworks
The main advantage of trading using opposite MIC Electronics and Jubilant Foodworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIC Electronics position performs unexpectedly, Jubilant Foodworks 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 Jubilant Foodworks will offset losses from the drop in Jubilant Foodworks' long position.| MIC Electronics vs. V2 Retail Limited | MIC Electronics vs. V Mart Retail Limited | MIC Electronics vs. Osia Hyper Retail | MIC Electronics vs. Praxis Home Retail |
| Jubilant Foodworks vs. Reliance Industries Limited | Jubilant Foodworks vs. State Bank of | Jubilant Foodworks vs. HDFC Bank Limited | Jubilant Foodworks vs. Oil Natural Gas |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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