Correlation Between Juniper Hotels and Indian Renewable
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By analyzing existing cross correlation between Juniper Hotels and Indian Renewable Energy, you can compare the effects of market volatilities on Juniper Hotels and Indian Renewable 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 Indian Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and Indian Renewable.
Diversification Opportunities for Juniper Hotels and Indian Renewable
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juniper and Indian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and Indian Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indian Renewable Energy 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 Indian Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indian Renewable Energy has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and Indian Renewable go up and down completely randomly.
Pair Corralation between Juniper Hotels and Indian Renewable
Assuming the 90 days trading horizon Juniper Hotels is expected to generate 1.22 times less return on investment than Indian Renewable. In addition to that, Juniper Hotels is 1.19 times more volatile than Indian Renewable Energy. It trades about 0.22 of its total potential returns per unit of risk. Indian Renewable Energy is currently generating about 0.32 per unit of volatility. If you would invest 19,449 in Indian Renewable Energy on September 13, 2024 and sell it today you would earn a total of 3,094 from holding Indian Renewable Energy or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Hotels vs. Indian Renewable Energy
Performance |
| Timeline |
| Juniper Hotels |
| Indian Renewable Energy |
Juniper Hotels and Indian Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and Indian Renewable
The main advantage of trading using opposite Juniper Hotels and Indian Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, Indian Renewable 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 Indian Renewable will offset losses from the drop in Indian Renewable's long position.| Juniper Hotels vs. Indian Railway Finance | Juniper Hotels vs. Cholamandalam Financial Holdings | Juniper Hotels vs. Reliance Industries Limited | Juniper Hotels vs. Tata Consultancy Services |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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