Correlation Between Dev Information and Jindal Photo

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

By analyzing existing cross correlation between Dev Information Technology and Jindal Photo Limited, you can compare the effects of market volatilities on Dev Information and Jindal Photo 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 Dev Information with a short position of Jindal Photo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dev Information and Jindal Photo.

Diversification Opportunities for Dev Information and Jindal Photo

-0.05

Correlation Coefficient

Dev Information  Jindal Photo

Good diversification

The 3 months correlation between Dev and Jindal is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Dev Information Technology and Jindal Photo Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindal Photo Limited and Dev Information 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 Dev Information Technology are associated (or correlated) with Jindal Photo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindal Photo Limited has no effect on the direction of Dev Information i.e., Dev Information and Jindal Photo go up and down completely randomly.

Pair Corralation between Dev Information and Jindal Photo

Assuming the 90 days trading horizon Dev Information Technology is expected to under-perform the Jindal Photo. In addition to that, Dev Information is 1.23 times more volatile than Jindal Photo Limited. It trades about -0.01 of its total potential returns per unit of risk. Jindal Photo Limited is currently generating about 0.08 per unit of volatility. If you would invest  81,890  in Jindal Photo Limited on April 20, 2025 and sell it today you would earn a total of  7,895  from holding Jindal Photo Limited or generate 9.64% return on investment over 90 days.

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

Dev Information Technology  vs.  Jindal Photo Limited

Dev Information Tech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dev Information Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Dev Information is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Jindal Photo Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jindal Photo Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical indicators, Jindal Photo may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Dev Information and Jindal Photo

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

The idea behind Dev Information Technology and Jindal Photo Limited 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.