Correlation Between Juniper Hotels and Hindustan Foods
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By analyzing existing cross correlation between Juniper Hotels and Hindustan Foods Limited, you can compare the effects of market volatilities on Juniper Hotels and Hindustan 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 Hindustan Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and Hindustan Foods.
Diversification Opportunities for Juniper Hotels and Hindustan Foods
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Juniper and Hindustan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and Hindustan Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hindustan Foods 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 Hindustan Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hindustan Foods has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and Hindustan Foods go up and down completely randomly.
Pair Corralation between Juniper Hotels and Hindustan Foods
Assuming the 90 days trading horizon Juniper Hotels is expected to generate 1.56 times more return on investment than Hindustan Foods. However, Juniper Hotels is 1.56 times more volatile than Hindustan Foods Limited. It trades about -0.01 of its potential returns per unit of risk. Hindustan Foods Limited is currently generating about -0.02 per unit of risk. If you would invest 40,150 in Juniper Hotels on August 29, 2024 and sell it today you would lose (3,990) from holding Juniper Hotels or give up 9.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.19% |
| Values | Daily Returns |
Juniper Hotels vs. Hindustan Foods Limited
Performance |
| Timeline |
| Juniper Hotels |
| Hindustan Foods |
Juniper Hotels and Hindustan Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and Hindustan Foods
The main advantage of trading using opposite Juniper Hotels and Hindustan Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, Hindustan 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 Hindustan Foods will offset losses from the drop in Hindustan Foods' 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 |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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