Correlation Between MRF and Jindal Poly
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By analyzing existing cross correlation between MRF Limited and Jindal Poly Investment, you can compare the effects of market volatilities on MRF and Jindal Poly 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 MRF with a short position of Jindal Poly. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRF and Jindal Poly.
Diversification Opportunities for MRF and Jindal Poly
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MRF and Jindal is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding MRF Limited and Jindal Poly Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindal Poly Investment and MRF 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 MRF Limited are associated (or correlated) with Jindal Poly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindal Poly Investment has no effect on the direction of MRF i.e., MRF and Jindal Poly go up and down completely randomly.
Pair Corralation between MRF and Jindal Poly
Assuming the 90 days trading horizon MRF is expected to generate 2.06 times less return on investment than Jindal Poly. But when comparing it to its historical volatility, MRF Limited is 2.08 times less risky than Jindal Poly. It trades about 0.04 of its potential returns per unit of risk. Jindal Poly Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 66,005 in Jindal Poly Investment on January 25, 2025 and sell it today you would earn a total of 18,890 from holding Jindal Poly Investment or generate 28.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRF Limited vs. Jindal Poly Investment
Performance |
| Timeline |
| MRF Limited |
| Jindal Poly Investment |
MRF and Jindal Poly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRF and Jindal Poly
The main advantage of trading using opposite MRF and Jindal Poly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRF position performs unexpectedly, Jindal Poly 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 Poly will offset losses from the drop in Jindal Poly's long position.| MRF vs. GM Breweries Limited | MRF vs. Privi Speciality Chemicals | MRF vs. IG Petrochemicals Limited | MRF vs. Bodal Chemicals Limited |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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