Correlation Between POWERGRID Infrastructure and Jai Balaji
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By analyzing existing cross correlation between POWERGRID Infrastructure Investment and Jai Balaji Industries, you can compare the effects of market volatilities on POWERGRID Infrastructure and Jai Balaji 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 POWERGRID Infrastructure with a short position of Jai Balaji. Check out your portfolio center. Please also check ongoing floating volatility patterns of POWERGRID Infrastructure and Jai Balaji.
Diversification Opportunities for POWERGRID Infrastructure and Jai Balaji
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between POWERGRID and Jai is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding POWERGRID Infrastructure Inves and Jai Balaji Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jai Balaji Industries and POWERGRID Infrastructure 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 POWERGRID Infrastructure Investment are associated (or correlated) with Jai Balaji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jai Balaji Industries has no effect on the direction of POWERGRID Infrastructure i.e., POWERGRID Infrastructure and Jai Balaji go up and down completely randomly.
Pair Corralation between POWERGRID Infrastructure and Jai Balaji
Assuming the 90 days trading horizon POWERGRID Infrastructure Investment is expected to generate 0.43 times more return on investment than Jai Balaji. However, POWERGRID Infrastructure Investment is 2.33 times less risky than Jai Balaji. It trades about -0.02 of its potential returns per unit of risk. Jai Balaji Industries is currently generating about -0.26 per unit of risk. If you would invest 8,548 in POWERGRID Infrastructure Investment on October 25, 2024 and sell it today you would lose (59.00) from holding POWERGRID Infrastructure Investment or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
POWERGRID Infrastructure Inves vs. Jai Balaji Industries
Performance |
| Timeline |
| POWERGRID Infrastructure |
| Jai Balaji Industries |
POWERGRID Infrastructure and Jai Balaji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with POWERGRID Infrastructure and Jai Balaji
The main advantage of trading using opposite POWERGRID Infrastructure and Jai Balaji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if POWERGRID Infrastructure position performs unexpectedly, Jai Balaji 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 Jai Balaji will offset losses from the drop in Jai Balaji's long position.| POWERGRID Infrastructure vs. Union Bank of | POWERGRID Infrastructure vs. City Union Bank | POWERGRID Infrastructure vs. Sportking India Limited | POWERGRID Infrastructure vs. Hathway Cable Datacom |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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