Correlation Between Blue Jet and JSW Steel
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By analyzing existing cross correlation between Blue Jet Healthcare and JSW Steel Limited, you can compare the effects of market volatilities on Blue Jet and JSW 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 Blue Jet with a short position of JSW Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Jet and JSW Steel.
Diversification Opportunities for Blue Jet and JSW Steel
Very good diversification
The 3 months correlation between Blue and JSW is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Blue Jet Healthcare and JSW Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSW Steel Limited and Blue Jet 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 Blue Jet Healthcare are associated (or correlated) with JSW Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSW Steel Limited has no effect on the direction of Blue Jet i.e., Blue Jet and JSW Steel go up and down completely randomly.
Pair Corralation between Blue Jet and JSW Steel
Assuming the 90 days trading horizon Blue Jet Healthcare is expected to generate 1.86 times more return on investment than JSW Steel. However, Blue Jet is 1.86 times more volatile than JSW Steel Limited. It trades about 0.09 of its potential returns per unit of risk. JSW Steel Limited is currently generating about -0.11 per unit of risk. If you would invest 52,820 in Blue Jet Healthcare on September 25, 2024 and sell it today you would earn a total of 2,480 from holding Blue Jet Healthcare or generate 4.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Blue Jet Healthcare vs. JSW Steel Limited
Performance |
Timeline |
Blue Jet Healthcare |
JSW Steel Limited |
Blue Jet and JSW Steel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blue Jet and JSW Steel
The main advantage of trading using opposite Blue Jet and JSW Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Jet position performs unexpectedly, JSW 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 JSW Steel will offset losses from the drop in JSW Steel's long position.Blue Jet vs. Tata Consultancy Services | Blue Jet vs. Quess Corp Limited | Blue Jet vs. Reliance Industries Limited | Blue Jet vs. Infosys Limited |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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