Correlation Between JTL Industries and Pritish Nandy

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

By analyzing existing cross correlation between JTL Industries and Pritish Nandy Communications, you can compare the effects of market volatilities on JTL Industries and Pritish Nandy 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 JTL Industries with a short position of Pritish Nandy. Check out your portfolio center. Please also check ongoing floating volatility patterns of JTL Industries and Pritish Nandy.

Diversification Opportunities for JTL Industries and Pritish Nandy

0.41

Correlation Coefficient

JTL Industries  Pritish Nandy

Very weak diversification

The 3 months correlation between JTL and Pritish is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding JTL Industries and Pritish Nandy Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pritish Nandy Commun and JTL Industries 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 JTL Industries are associated (or correlated) with Pritish Nandy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pritish Nandy Commun has no effect on the direction of JTL Industries i.e., JTL Industries and Pritish Nandy go up and down completely randomly.

Pair Corralation between JTL Industries and Pritish Nandy

Assuming the 90 days trading horizon JTL Industries is expected to generate 0.87 times more return on investment than Pritish Nandy. However, JTL Industries is 1.14 times less risky than Pritish Nandy. It trades about -0.12 of its potential returns per unit of risk. Pritish Nandy Communications is currently generating about -0.12 per unit of risk. If you would invest  9,759  in JTL Industries on September 24, 2024 and sell it today you would lose (388.00) from holding JTL Industries or give up 3.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

JTL Industries  vs.  Pritish Nandy Communications

JTL Industries

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pritish Nandy Commun

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with JTL Industries and Pritish Nandy

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

The idea behind JTL Industries and Pritish Nandy Communications 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.