Correlation Between Juniper Hotels and ADF Foods
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By analyzing existing cross correlation between Juniper Hotels and ADF Foods Limited, you can compare the effects of market volatilities on Juniper Hotels and ADF Foods 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 Juniper Hotels with a short position of ADF Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and ADF Foods.
Diversification Opportunities for Juniper Hotels and ADF Foods
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Juniper and ADF is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and ADF Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADF Foods Limited and Juniper Hotels 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 Juniper Hotels are associated (or correlated) with ADF Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADF Foods Limited has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and ADF Foods go up and down completely randomly.
Pair Corralation between Juniper Hotels and ADF Foods
Assuming the 90 days trading horizon Juniper Hotels is expected to under-perform the ADF Foods. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Hotels is 1.14 times less risky than ADF Foods. The stock trades about -0.01 of its potential returns per unit of risk. The ADF Foods Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20,100 in ADF Foods Limited on September 14, 2024 and sell it today you would earn a total of 12,845 from holding ADF Foods Limited or generate 63.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.07% |
| Values | Daily Returns |
Juniper Hotels vs. ADF Foods Limited
Performance |
| Timeline |
| Juniper Hotels |
| ADF Foods Limited |
Juniper Hotels and ADF Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and ADF Foods
The main advantage of trading using opposite Juniper Hotels and ADF Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, ADF Foods 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 ADF Foods will offset losses from the drop in ADF Foods' long position.| Juniper Hotels vs. Sonata Software Limited | Juniper Hotels vs. Sportking India Limited | Juniper Hotels vs. SINCLAIRS HOTELS ORD | Juniper Hotels vs. Apollo Sindoori Hotels |
| ADF Foods vs. State Bank of | ADF Foods vs. Life Insurance | ADF Foods vs. HDFC Bank Limited | ADF Foods vs. ICICI Bank 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 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..
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