Correlation Between JGCHEMICALS and Power Mech

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

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

Diversification Opportunities for JGCHEMICALS and Power Mech

0.0

Correlation Coefficient

JGCHEMICALS  Power Mech

Pay attention - limited upside

The 3 months correlation between JGCHEMICALS and Power is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JGCHEMICALS LIMITED and Power Mech Projects in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Mech Projects 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 Power Mech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Mech Projects has no effect on the direction of JGCHEMICALS i.e., JGCHEMICALS and Power Mech go up and down completely randomly.

Pair Corralation between JGCHEMICALS and Power Mech

If you would invest  0.00  in Power Mech Projects on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Power Mech Projects or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

JGCHEMICALS LIMITED  vs.  Power Mech Projects

JGCHEMICALS LIMITED

Risk-Adjusted Performance

Very Weak

Over the last 90 days JGCHEMICALS LIMITED has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Power Mech Projects

Risk-Adjusted Performance

Very Weak

Over the last 90 days Power Mech Projects has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Power Mech is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with JGCHEMICALS and Power Mech

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

The idea behind JGCHEMICALS LIMITED and Power Mech Projects 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.