Correlation Between Ankit Metal and Jindal Steel

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ankit Metal and Jindal Steel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ankit Metal and Jindal Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ankit Metal Power and Jindal Steel Power, you can compare the effects of market volatilities on Ankit Metal and Jindal Steel 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 Ankit Metal with a short position of Jindal Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ankit Metal and Jindal Steel.

Diversification Opportunities for Ankit Metal and Jindal Steel

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Ankit and Jindal is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ankit Metal Power and Jindal Steel Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindal Steel Power and Ankit Metal 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 Ankit Metal Power are associated (or correlated) with Jindal Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindal Steel Power has no effect on the direction of Ankit Metal i.e., Ankit Metal and Jindal Steel go up and down completely randomly.

Pair Corralation between Ankit Metal and Jindal Steel

Assuming the 90 days trading horizon Ankit Metal Power is expected to generate 1.65 times more return on investment than Jindal Steel. However, Ankit Metal is 1.65 times more volatile than Jindal Steel Power. It trades about 0.44 of its potential returns per unit of risk. Jindal Steel Power is currently generating about -0.02 per unit of risk. If you would invest  370.00  in Ankit Metal Power on October 8, 2024 and sell it today you would earn a total of  92.00  from holding Ankit Metal Power or generate 24.86% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy94.74%
ValuesDaily Returns

Ankit Metal Power  vs.  Jindal Steel Power

 Performance 
       Timeline  
Ankit Metal Power 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Ankit Metal Power are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Ankit Metal exhibited solid returns over the last few months and may actually be approaching a breakup point.
Jindal Steel Power 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Jindal Steel Power has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Jindal Steel is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Ankit Metal and Jindal Steel Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ankit Metal and Jindal Steel

The main advantage of trading using opposite Ankit Metal and Jindal Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ankit Metal position performs unexpectedly, Jindal Steel 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 Jindal Steel will offset losses from the drop in Jindal Steel's long position.
The idea behind Ankit Metal Power and Jindal Steel Power pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Equity Valuation
Check real value of public entities based on technical and fundamental data
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Bonds Directory
Find actively traded corporate debentures issued by US companies