Correlation Between Xchanging Solutions and JGCHEMICALS
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By analyzing existing cross correlation between Xchanging Solutions Limited and JGCHEMICALS LIMITED, you can compare the effects of market volatilities on Xchanging Solutions and JGCHEMICALS 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 Xchanging Solutions with a short position of JGCHEMICALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xchanging Solutions and JGCHEMICALS.
Diversification Opportunities for Xchanging Solutions and JGCHEMICALS
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xchanging and JGCHEMICALS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Xchanging Solutions Limited and JGCHEMICALS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JGCHEMICALS LIMITED and Xchanging Solutions 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 Xchanging Solutions Limited are associated (or correlated) with JGCHEMICALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JGCHEMICALS LIMITED has no effect on the direction of Xchanging Solutions i.e., Xchanging Solutions and JGCHEMICALS go up and down completely randomly.
Pair Corralation between Xchanging Solutions and JGCHEMICALS
Assuming the 90 days trading horizon Xchanging Solutions is expected to generate 2.93 times less return on investment than JGCHEMICALS. But when comparing it to its historical volatility, Xchanging Solutions Limited is 2.95 times less risky than JGCHEMICALS. It trades about 0.34 of its potential returns per unit of risk. JGCHEMICALS LIMITED is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 33,110 in JGCHEMICALS LIMITED on September 13, 2024 and sell it today you would earn a total of 12,755 from holding JGCHEMICALS LIMITED or generate 38.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xchanging Solutions Limited vs. JGCHEMICALS LIMITED
Performance |
| Timeline |
| Xchanging Solutions |
| JGCHEMICALS LIMITED |
Xchanging Solutions and JGCHEMICALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xchanging Solutions and JGCHEMICALS
The main advantage of trading using opposite Xchanging Solutions and JGCHEMICALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xchanging Solutions position performs unexpectedly, JGCHEMICALS 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 JGCHEMICALS will offset losses from the drop in JGCHEMICALS's long position.| Xchanging Solutions vs. JGCHEMICALS LIMITED | Xchanging Solutions vs. Thirumalai Chemicals Limited | Xchanging Solutions vs. FCS Software Solutions | Xchanging Solutions vs. DMCC SPECIALITY CHEMICALS |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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