Correlation Between Juniper Hotels and Adani Total
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By analyzing existing cross correlation between Juniper Hotels and Adani Total Gas, you can compare the effects of market volatilities on Juniper Hotels and Adani Total 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 Adani Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and Adani Total.
Diversification Opportunities for Juniper Hotels and Adani Total
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juniper and Adani is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and Adani Total Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adani Total Gas 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 Adani Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adani Total Gas has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and Adani Total go up and down completely randomly.
Pair Corralation between Juniper Hotels and Adani Total
Assuming the 90 days trading horizon Juniper Hotels is expected to under-perform the Adani Total. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Hotels is 1.16 times less risky than Adani Total. The stock trades about -0.17 of its potential returns per unit of risk. The Adani Total Gas is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 67,095 in Adani Total Gas on October 25, 2024 and sell it today you would lose (1,560) from holding Adani Total Gas or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Juniper Hotels vs. Adani Total Gas
Performance |
| Timeline |
| Juniper Hotels |
| Adani Total Gas |
Juniper Hotels and Adani Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and Adani Total
The main advantage of trading using opposite Juniper Hotels and Adani Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, Adani Total 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 Adani Total will offset losses from the drop in Adani Total's long position.| Juniper Hotels vs. Reliance Industries Limited | Juniper Hotels vs. HDFC Bank Limited | Juniper Hotels vs. Bharti Airtel Limited | Juniper Hotels vs. State Bank of |
| Adani Total vs. V2 Retail Limited | Adani Total vs. R S Software | Adani Total vs. Juniper Hotels | Adani Total vs. Le Travenues Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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