Correlation Between Juniper Hotels and Blue Coast
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By analyzing existing cross correlation between Juniper Hotels and Blue Coast Hotels, you can compare the effects of market volatilities on Juniper Hotels and Blue Coast 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 Blue Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and Blue Coast.
Diversification Opportunities for Juniper Hotels and Blue Coast
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniper and Blue is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and Blue Coast Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Coast Hotels 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 Blue Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Coast Hotels has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and Blue Coast go up and down completely randomly.
Pair Corralation between Juniper Hotels and Blue Coast
Assuming the 90 days trading horizon Juniper Hotels is expected to generate 2.6 times more return on investment than Blue Coast. However, Juniper Hotels is 2.6 times more volatile than Blue Coast Hotels. It trades about 0.15 of its potential returns per unit of risk. Blue Coast Hotels is currently generating about -0.22 per unit of risk. If you would invest 33,400 in Juniper Hotels on August 30, 2024 and sell it today you would earn a total of 2,760 from holding Juniper Hotels or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Hotels vs. Blue Coast Hotels
Performance |
| Timeline |
| Juniper Hotels |
| Blue Coast Hotels |
Juniper Hotels and Blue Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and Blue Coast
The main advantage of trading using opposite Juniper Hotels and Blue Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, Blue Coast 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 Blue Coast will offset losses from the drop in Blue Coast's long position.| Juniper Hotels vs. Hemisphere Properties India | Juniper Hotels vs. India Glycols Limited | Juniper Hotels vs. Indo Borax Chemicals | Juniper Hotels vs. Kingfa Science Technology |
| Blue Coast vs. Hemisphere Properties India | Blue Coast vs. India Glycols Limited | Blue Coast vs. Indo Borax Chemicals | Blue Coast vs. Kingfa Science 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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