Correlation Between ZF Commercial and Jubilant Foodworks
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By analyzing existing cross correlation between ZF Commercial Vehicle and Jubilant Foodworks Limited, you can compare the effects of market volatilities on ZF Commercial 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 ZF Commercial with a short position of Jubilant Foodworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZF Commercial and Jubilant Foodworks.
Diversification Opportunities for ZF Commercial and Jubilant Foodworks
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZFCVINDIA and Jubilant is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding ZF Commercial Vehicle and Jubilant Foodworks Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jubilant Foodworks and ZF Commercial 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 ZF Commercial Vehicle 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 ZF Commercial i.e., ZF Commercial and Jubilant Foodworks go up and down completely randomly.
Pair Corralation between ZF Commercial and Jubilant Foodworks
Assuming the 90 days trading horizon ZF Commercial Vehicle is expected to under-perform the Jubilant Foodworks. In addition to that, ZF Commercial is 1.52 times more volatile than Jubilant Foodworks Limited. It trades about -0.18 of its total potential returns per unit of risk. Jubilant Foodworks Limited is currently generating about 0.26 per unit of volatility. 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 | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ZF Commercial Vehicle vs. Jubilant Foodworks Limited
Performance |
| Timeline |
| ZF Commercial Vehicle |
| Jubilant Foodworks |
ZF Commercial and Jubilant Foodworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZF Commercial and Jubilant Foodworks
The main advantage of trading using opposite ZF Commercial and Jubilant Foodworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZF Commercial 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.| ZF Commercial vs. Kingfa Science Technology | ZF Commercial vs. Rico Auto Industries | ZF Commercial vs. GACM Technologies Limited | ZF Commercial vs. COSMO FIRST LIMITED |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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