Correlation Between EIH Associated and Juniper Hotels
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By analyzing existing cross correlation between EIH Associated Hotels and Juniper Hotels, you can compare the effects of market volatilities on EIH Associated and Juniper Hotels 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 EIH Associated with a short position of Juniper Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIH Associated and Juniper Hotels.
Diversification Opportunities for EIH Associated and Juniper Hotels
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EIH and Juniper is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding EIH Associated Hotels and Juniper Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Hotels and EIH Associated 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 EIH Associated Hotels are associated (or correlated) with Juniper Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper Hotels has no effect on the direction of EIH Associated i.e., EIH Associated and Juniper Hotels go up and down completely randomly.
Pair Corralation between EIH Associated and Juniper Hotels
Assuming the 90 days trading horizon EIH Associated Hotels is expected to generate 1.06 times more return on investment than Juniper Hotels. However, EIH Associated is 1.06 times more volatile than Juniper Hotels. It trades about -0.03 of its potential returns per unit of risk. Juniper Hotels is currently generating about -0.05 per unit of risk. If you would invest 39,825 in EIH Associated Hotels on August 28, 2024 and sell it today you would lose (1,615) from holding EIH Associated Hotels or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIH Associated Hotels vs. Juniper Hotels
Performance |
| Timeline |
| EIH Associated Hotels |
| Juniper Hotels |
EIH Associated and Juniper Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIH Associated and Juniper Hotels
The main advantage of trading using opposite EIH Associated and Juniper Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIH Associated position performs unexpectedly, Juniper Hotels 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 Juniper Hotels will offset losses from the drop in Juniper Hotels' long position.| EIH Associated vs. Nalwa Sons Investments | EIH Associated vs. The State Trading | EIH Associated vs. Mangalam Drugs And | EIH Associated vs. Bombay Burmah Trading |
| Juniper Hotels vs. Life Insurance | Juniper Hotels vs. V2 Retail Limited | Juniper Hotels vs. Pritish Nandy Communications | Juniper Hotels vs. Varun Beverages Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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