Correlation Between JHS Svendgaard and JSW Holdings

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

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

Diversification Opportunities for JHS Svendgaard and JSW Holdings

0.37

Correlation Coefficient

JHS Svendgaard  JSW Holdings

Weak diversification

The 3 months correlation between JHS and JSW is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding JHS Svendgaard Retail 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 JHS Svendgaard 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 JHS Svendgaard Retail 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 JHS Svendgaard i.e., JHS Svendgaard and JSW Holdings go up and down completely randomly.

Pair Corralation between JHS Svendgaard and JSW Holdings

Assuming the 90 days trading horizon JHS Svendgaard Retail is expected to generate 1.29 times more return on investment than JSW Holdings. However, JHS Svendgaard is 1.29 times more volatile than JSW Holdings Limited. It trades about -0.02 of its potential returns per unit of risk. JSW Holdings Limited is currently generating about -0.11 per unit of risk. If you would invest  3,819  in JHS Svendgaard Retail on April 20, 2025 and sell it today you would lose (223.00) from holding JHS Svendgaard Retail or give up 5.84% of portfolio value over 90 days.

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

JHS Svendgaard Retail  vs.  JSW Holdings Limited

JHS Svendgaard Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days JHS Svendgaard Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, JHS Svendgaard is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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 unsteady 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 JHS Svendgaard and JSW Holdings

The main advantage of trading using opposite JHS Svendgaard and JSW Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JHS Svendgaard 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 JHS Svendgaard Retail 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 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..