Correlation Between JGCHEMICALS and Repco Home
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By analyzing existing cross correlation between JGCHEMICALS LIMITED and Repco Home Finance, you can compare the effects of market volatilities on JGCHEMICALS and Repco Home 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 JGCHEMICALS with a short position of Repco Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Repco Home.
Diversification Opportunities for JGCHEMICALS and Repco Home
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between JGCHEMICALS and Repco is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Repco Home Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repco Home Finance and JGCHEMICALS 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 JGCHEMICALS LIMITED are associated (or correlated) with Repco Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repco Home Finance has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Repco Home go up and down completely randomly.
Pair Corralation between JGCHEMICALS and Repco Home
Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to generate 1.95 times more return on investment than Repco Home. However, JGCHEMICALS is 1.95 times more volatile than Repco Home Finance. It trades about 0.02 of its potential returns per unit of risk. Repco Home Finance is currently generating about -0.2 per unit of risk. If you would invest 40,950 in JGCHEMICALS LIMITED on September 25, 2024 and sell it today you would lose (340.00) from holding JGCHEMICALS LIMITED or give up 0.83% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
JGCHEMICALS LIMITED vs. Repco Home Finance
Performance |
Timeline |
JGCHEMICALS LIMITED |
Repco Home Finance |
JGCHEMICALS and Repco Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JGCHEMICALS and Repco Home
The main advantage of trading using opposite JGCHEMICALS and Repco Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Repco Home 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 Repco Home will offset losses from the drop in Repco Home's long position.JGCHEMICALS vs. Hindustan Zinc Limited | JGCHEMICALS vs. Vedanta Limited | JGCHEMICALS vs. MOIL Limited | JGCHEMICALS vs. The Orissa Minerals |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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