Correlation Between LLOYDS METALS and Jindal Steel

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

By analyzing existing cross correlation between LLOYDS METALS AND and Jindal Steel Power, you can compare the effects of market volatilities on LLOYDS METALS and Jindal Steel 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 LLOYDS METALS with a short position of Jindal Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of LLOYDS METALS and Jindal Steel.

Diversification Opportunities for LLOYDS METALS and Jindal Steel

0.5

Correlation Coefficient

LLOYDS METALS  Jindal Steel

Very weak diversification

The 3 months correlation between LLOYDS and Jindal is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding LLOYDS METALS AND and Jindal Steel Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jindal Steel Power and LLOYDS METALS 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 LLOYDS METALS AND are associated (or correlated) with Jindal Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jindal Steel Power has no effect on the direction of LLOYDS METALS i.e., LLOYDS METALS and Jindal Steel go up and down completely randomly.

Pair Corralation between LLOYDS METALS and Jindal Steel

Assuming the 90 days trading horizon LLOYDS METALS AND is expected to generate 1.4 times more return on investment than Jindal Steel. However, LLOYDS METALS is 1.4 times more volatile than Jindal Steel Power. It trades about 0.11 of its potential returns per unit of risk. Jindal Steel Power is currently generating about 0.07 per unit of risk. If you would invest  132,581  in LLOYDS METALS AND on April 24, 2025 and sell it today you would earn a total of  20,099  from holding LLOYDS METALS AND or generate 15.16% return on investment over 90 days.

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

LLOYDS METALS AND  vs.  Jindal Steel Power

LLOYDS METALS AND

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LLOYDS METALS AND are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, LLOYDS METALS displayed solid returns over the last few months and may actually be approaching a breakup point.

Jindal Steel Power

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Jindal Steel Power are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Jindal Steel may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with LLOYDS METALS and Jindal Steel

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

The idea behind LLOYDS METALS AND and Jindal Steel Power 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.