Correlation Between Jindal Poly and Akme Fintrade

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Can any of the company-specific risk be diversified away by investing in both Jindal Poly and Akme Fintrade 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 Poly and Akme Fintrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jindal Poly Investment and Akme Fintrade India, you can compare the effects of market volatilities on Jindal Poly and Akme Fintrade 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 Poly with a short position of Akme Fintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jindal Poly and Akme Fintrade.

Diversification Opportunities for Jindal Poly and Akme Fintrade

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Jindal and Akme is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jindal Poly Investment and Akme Fintrade India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akme Fintrade India and Jindal Poly 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 Poly Investment are associated (or correlated) with Akme Fintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akme Fintrade India has no effect on the direction of Jindal Poly i.e., Jindal Poly and Akme Fintrade go up and down completely randomly.

Pair Corralation between Jindal Poly and Akme Fintrade

Assuming the 90 days trading horizon Jindal Poly Investment is expected to generate 1.54 times more return on investment than Akme Fintrade. However, Jindal Poly is 1.54 times more volatile than Akme Fintrade India. It trades about 0.11 of its potential returns per unit of risk. Akme Fintrade India is currently generating about 0.04 per unit of risk. If you would invest  74,080  in Jindal Poly Investment on August 18, 2025 and sell it today you would earn a total of  21,205  from holding Jindal Poly Investment or generate 28.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Jindal Poly Investment  vs.  Akme Fintrade India

 Performance 
       Timeline  
Jindal Poly Investment 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Jindal Poly Investment are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Jindal Poly displayed solid returns over the last few months and may actually be approaching a breakup point.
Akme Fintrade India 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Akme Fintrade India are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Akme Fintrade may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Jindal Poly and Akme Fintrade Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Jindal Poly and Akme Fintrade

The main advantage of trading using opposite Jindal Poly and Akme Fintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jindal Poly position performs unexpectedly, Akme Fintrade 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 Akme Fintrade will offset losses from the drop in Akme Fintrade's long position.
The idea behind Jindal Poly Investment and Akme Fintrade India 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.
Check out your portfolio center.
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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