Correlation Between Solid Power and Jindal Steel

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

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

Diversification Opportunities for Solid Power and Jindal Steel

0.5

Correlation Coefficient

Solid Power  Jindal Steel

Very weak diversification

The 3 months correlation between Solid and Jindal is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Solid Power 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 Solid Power 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 Solid Power 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 Solid Power i.e., Solid Power and Jindal Steel go up and down completely randomly.

Pair Corralation between Solid Power and Jindal Steel

Given the investment horizon of 90 days Solid Power is expected to under-perform the Jindal Steel. In addition to that, Solid Power is 2.96 times more volatile than Jindal Steel Power. It trades about -0.06 of its total potential returns per unit of risk. Jindal Steel Power is currently generating about 0.2 per unit of volatility. If you would invest  96,285  in Jindal Steel Power on July 1, 2025 and sell it today you would earn a total of  6,665  from holding Jindal Steel Power or generate 6.92% return on investment over 90 days.

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

Solid Power  vs.  Jindal Steel Power

Solid Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Solid Power are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain fundamental indicators, Solid Power reported solid returns over the last few months and may actually be approaching a breakup point.

Jindal Steel Power

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Jindal Steel Power are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Jindal Steel may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Solid Power and Jindal Steel

The main advantage of trading using opposite Solid Power and Jindal Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Power 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 Solid Power 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.