Correlation Between Jindal Stainless and Lloyds Enterprises

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

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

Diversification Opportunities for Jindal Stainless and Lloyds Enterprises

0.74

Correlation Coefficient

Jindal Stainless  Lloyds Enterprises

Poor diversification

The 3 months correlation between Jindal and Lloyds is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Stainless Limited and Lloyds Enterprises Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Enterprises and Jindal Stainless 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 Jindal Stainless Limited are associated (or correlated) with Lloyds Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Enterprises has no effect on the direction of Jindal Stainless i.e., Jindal Stainless and Lloyds Enterprises go up and down completely randomly.

Pair Corralation between Jindal Stainless and Lloyds Enterprises

Assuming the 90 days trading horizon Jindal Stainless is expected to generate 2.22 times less return on investment than Lloyds Enterprises. But when comparing it to its historical volatility, Jindal Stainless Limited is 1.97 times less risky than Lloyds Enterprises. It trades about 0.16 of its potential returns per unit of risk. Lloyds Enterprises Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  5,493  in Lloyds Enterprises Limited on April 24, 2025 and sell it today you would earn a total of  2,681  from holding Lloyds Enterprises Limited or generate 48.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Jindal Stainless Limited  vs.  Lloyds Enterprises Limited

Jindal Stainless

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jindal Stainless Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Jindal Stainless exhibited solid returns over the last few months and may actually be approaching a breakup point.

Lloyds Enterprises

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lloyds Enterprises Limited are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Lloyds Enterprises exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jindal Stainless and Lloyds Enterprises

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

The idea behind Jindal Stainless Limited and Lloyds Enterprises 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..