Correlation Between Indian Card and JSW Holdings

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

By analyzing existing cross correlation between Indian Card Clothing and JSW Holdings Limited, you can compare the effects of market volatilities on Indian Card and JSW Holdings 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 Indian Card with a short position of JSW Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indian Card and JSW Holdings.

Diversification Opportunities for Indian Card and JSW Holdings

-0.28

Correlation Coefficient

Indian Card  JSW Holdings

Very good diversification

The 3 months correlation between Indian and JSW is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Indian Card Clothing and JSW Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSW Holdings Limited and Indian Card 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 Indian Card Clothing are associated (or correlated) with JSW Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSW Holdings Limited has no effect on the direction of Indian Card i.e., Indian Card and JSW Holdings go up and down completely randomly.

Pair Corralation between Indian Card and JSW Holdings

Assuming the 90 days trading horizon Indian Card Clothing is expected to under-perform the JSW Holdings. In addition to that, Indian Card is 1.78 times more volatile than JSW Holdings Limited. It trades about -0.14 of its total potential returns per unit of risk. JSW Holdings Limited is currently generating about 0.0 per unit of volatility. If you would invest  2,232,000  in JSW Holdings Limited on April 4, 2025 and sell it today you would lose (11,000) from holding JSW Holdings Limited or give up 0.49% of portfolio value over 90 days.

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

Indian Card Clothing  vs.  JSW Holdings Limited

Indian Card Clothing

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Indian Card Clothing are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Indian Card exhibited solid returns over the last few months and may actually be approaching a breakup point.

JSW Holdings Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days JSW Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Indian Card and JSW Holdings

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

The idea behind Indian Card Clothing and JSW Holdings 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.