Correlation Between JGCHEMICALS and Hybrid Financial

Can any of the company-specific risk be diversified away by investing in both JGCHEMICALS and Hybrid Financial 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 JGCHEMICALS and Hybrid Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between JGCHEMICALS LIMITED and Hybrid Financial Services, you can compare the effects of market volatilities on JGCHEMICALS and Hybrid Financial 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 Hybrid Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of JGCHEMICALS and Hybrid Financial.

Diversification Opportunities for JGCHEMICALS and Hybrid Financial

-0.08

Correlation Coefficient

JGCHEMICALS  Hybrid Financial

Good diversification

The 3 months correlation between JGCHEMICALS and Hybrid is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Hybrid Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hybrid Financial Services 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 Hybrid Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hybrid Financial Services has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Hybrid Financial go up and down completely randomly.

Pair Corralation between JGCHEMICALS and Hybrid Financial

Assuming the 90 days trading horizon JGCHEMICALS LIMITED is expected to under-perform the Hybrid Financial. But the stock apears to be less risky and, when comparing its historical volatility, JGCHEMICALS LIMITED is 1.53 times less risky than Hybrid Financial. The stock trades about -0.31 of its potential returns per unit of risk. The Hybrid Financial Services is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  1,300  in Hybrid Financial Services on October 10, 2024 and sell it today you would earn a total of  187.00  from holding Hybrid Financial Services or generate 14.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

JGCHEMICALS LIMITED  vs.  Hybrid Financial Services

JGCHEMICALS LIMITED

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JGCHEMICALS LIMITED are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical indicators, JGCHEMICALS is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Hybrid Financial Services

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hybrid Financial Services are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Hybrid Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JGCHEMICALS and Hybrid Financial

The main advantage of trading using opposite JGCHEMICALS and Hybrid Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JGCHEMICALS position performs unexpectedly, Hybrid Financial 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 Hybrid Financial will offset losses from the drop in Hybrid Financial's long position.

The idea behind JGCHEMICALS LIMITED and Hybrid Financial Services 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..