Correlation Between Juniper Hotels and EIH Associated
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By analyzing existing cross correlation between Juniper Hotels and EIH Associated Hotels, you can compare the effects of market volatilities on Juniper Hotels and EIH Associated 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 EIH Associated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and EIH Associated.
Diversification Opportunities for Juniper Hotels and EIH Associated
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juniper and EIH is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and EIH Associated Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIH Associated 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 EIH Associated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIH Associated Hotels has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and EIH Associated go up and down completely randomly.
Pair Corralation between Juniper Hotels and EIH Associated
Assuming the 90 days trading horizon Juniper Hotels is expected to under-perform the EIH Associated. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Hotels is 1.02 times less risky than EIH Associated. The stock trades about -0.2 of its potential returns per unit of risk. The EIH Associated Hotels is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 35,740 in EIH Associated Hotels on August 25, 2024 and sell it today you would earn a total of 2,620 from holding EIH Associated Hotels or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Hotels vs. EIH Associated Hotels
Performance |
| Timeline |
| Juniper Hotels |
| EIH Associated Hotels |
Juniper Hotels and EIH Associated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and EIH Associated
The main advantage of trading using opposite Juniper Hotels and EIH Associated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, EIH Associated 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 EIH Associated will offset losses from the drop in EIH Associated's long position.| Juniper Hotels vs. Shyam Metalics and | Juniper Hotels vs. Sintex Plastics Technology | Juniper Hotels vs. Transport of | Juniper Hotels vs. Alkali Metals Limited |
| EIH Associated vs. Steelcast Limited | EIH Associated vs. Vardhman Special Steels | EIH Associated vs. Manaksia Steels Limited | EIH Associated vs. Shivalik Bimetal Controls |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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