Correlation Between GM Breweries and Juniper Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between GM Breweries Limited and Juniper Hotels, you can compare the effects of market volatilities on GM Breweries 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 GM Breweries with a short position of Juniper Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM Breweries and Juniper Hotels.
Diversification Opportunities for GM Breweries and Juniper Hotels
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GMBREW and Juniper is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding GM Breweries Limited and Juniper Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Hotels and GM Breweries 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 GM Breweries Limited 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 GM Breweries i.e., GM Breweries and Juniper Hotels go up and down completely randomly.
Pair Corralation between GM Breweries and Juniper Hotels
Assuming the 90 days trading horizon GM Breweries Limited is expected to generate 1.01 times more return on investment than Juniper Hotels. However, GM Breweries is 1.01 times more volatile than Juniper Hotels. It trades about -0.25 of its potential returns per unit of risk. Juniper Hotels is currently generating about -0.39 per unit of risk. If you would invest 83,335 in GM Breweries Limited on October 17, 2024 and sell it today you would lose (11,145) from holding GM Breweries Limited or give up 13.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GM Breweries Limited vs. Juniper Hotels
Performance |
| Timeline |
| GM Breweries Limited |
| Juniper Hotels |
GM Breweries and Juniper Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM Breweries and Juniper Hotels
The main advantage of trading using opposite GM Breweries and Juniper Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM Breweries 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.| GM Breweries vs. IOL Chemicals and | GM Breweries vs. IG Petrochemicals Limited | GM Breweries vs. Fertilizers and Chemicals | GM Breweries vs. Chembond Chemicals |
| Juniper Hotels vs. GM Breweries Limited | Juniper Hotels vs. Pilani Investment and | Juniper Hotels vs. Paramount Communications Limited | Juniper Hotels vs. BF Investment 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |