Correlation Between NIFTY SUMER and Jubilant Foodworks
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By analyzing existing cross correlation between NIFTY SUMER DURABLES and Jubilant Foodworks Limited, you can compare the effects of market volatilities on NIFTY SUMER 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 NIFTY SUMER with a short position of Jubilant Foodworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIFTY SUMER and Jubilant Foodworks.
Diversification Opportunities for NIFTY SUMER and Jubilant Foodworks
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NIFTY and Jubilant is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NIFTY SUMER DURABLES and Jubilant Foodworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilant Foodworks and NIFTY SUMER 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 NIFTY SUMER DURABLES 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 NIFTY SUMER i.e., NIFTY SUMER and Jubilant Foodworks go up and down completely randomly.
Pair Corralation between NIFTY SUMER and Jubilant Foodworks
Assuming the 90 days trading horizon NIFTY SUMER DURABLES is expected to under-perform the Jubilant Foodworks. But the index apears to be less risky and, when comparing its historical volatility, NIFTY SUMER DURABLES is 1.28 times less risky than Jubilant Foodworks. The index trades about -0.22 of its potential returns per unit of risk. The Jubilant Foodworks Limited is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 75,925 in Jubilant Foodworks Limited on November 8, 2024 and sell it today you would lose (3,420) from holding Jubilant Foodworks Limited or give up 4.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIFTY SUMER DURABLES vs. Jubilant Foodworks Limited
Performance |
| Timeline |
NIFTY SUMER and Jubilant Foodworks Volatility Contrast
Predicted Return Density |
| Returns |
NIFTY SUMER DURABLES
Pair trading matchups for NIFTY SUMER
Jubilant Foodworks Limited
Pair trading matchups for Jubilant Foodworks
Pair Trading with NIFTY SUMER and Jubilant Foodworks
The main advantage of trading using opposite NIFTY SUMER and Jubilant Foodworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIFTY SUMER 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.| NIFTY SUMER vs. Hilton Metal Forging | NIFTY SUMER vs. Blue Jet Healthcare | NIFTY SUMER vs. Industrial Investment Trust | NIFTY SUMER vs. Hisar Metal Industries |
| Jubilant Foodworks vs. Tata Consultancy Services | Jubilant Foodworks vs. Quess Corp Limited | Jubilant Foodworks vs. Reliance Industries Limited | Jubilant Foodworks vs. Infosys Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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