Correlation Between JSW Holdings and Power Mech
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By analyzing existing cross correlation between JSW Holdings Limited and Power Mech Projects, you can compare the effects of market volatilities on JSW Holdings 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 JSW Holdings with a short position of Power Mech. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSW Holdings and Power Mech.
Diversification Opportunities for JSW Holdings and Power Mech
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JSW and Power is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding JSW Holdings 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 JSW Holdings 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 JSW Holdings 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 JSW Holdings i.e., JSW Holdings and Power Mech go up and down completely randomly.
Pair Corralation between JSW Holdings and Power Mech
Assuming the 90 days trading horizon JSW Holdings Limited is expected to generate 0.45 times more return on investment than Power Mech. However, JSW Holdings Limited is 2.22 times less risky than Power Mech. It trades about 0.13 of its potential returns per unit of risk. Power Mech Projects is currently generating about 0.04 per unit of risk. If you would invest 514,320 in JSW Holdings Limited on September 25, 2024 and sell it today you would earn a total of 900,400 from holding JSW Holdings Limited or generate 175.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 99.18% |
Values | Daily Returns |
JSW Holdings Limited vs. Power Mech Projects
Performance |
Timeline |
JSW Holdings Limited |
Power Mech Projects |
JSW Holdings and Power Mech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with JSW Holdings and Power Mech
The main advantage of trading using opposite JSW Holdings and Power Mech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSW Holdings 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.JSW Holdings vs. State Bank of | JSW Holdings vs. Life Insurance | JSW Holdings vs. HDFC Bank Limited | JSW Holdings vs. ICICI Bank 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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