Correlation Between Juniper Hotels and JBM Auto
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By analyzing existing cross correlation between Juniper Hotels and JBM Auto Limited, you can compare the effects of market volatilities on Juniper Hotels and JBM Auto 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 JBM Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and JBM Auto.
Diversification Opportunities for Juniper Hotels and JBM Auto
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juniper and JBM is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and JBM Auto Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBM Auto Limited 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 JBM Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBM Auto Limited has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and JBM Auto go up and down completely randomly.
Pair Corralation between Juniper Hotels and JBM Auto
Assuming the 90 days trading horizon Juniper Hotels is expected to under-perform the JBM Auto. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Hotels is 1.08 times less risky than JBM Auto. The stock trades about -0.01 of its potential returns per unit of risk. The JBM Auto Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 126,012 in JBM Auto Limited on September 14, 2024 and sell it today you would earn a total of 50,313 from holding JBM Auto Limited or generate 39.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 74.34% |
| Values | Daily Returns |
Juniper Hotels vs. JBM Auto Limited
Performance |
| Timeline |
| Juniper Hotels |
| JBM Auto Limited |
Juniper Hotels and JBM Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and JBM Auto
The main advantage of trading using opposite Juniper Hotels and JBM Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, JBM Auto 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 JBM Auto will offset losses from the drop in JBM Auto's long position.| Juniper Hotels vs. Sonata Software Limited | Juniper Hotels vs. Sportking India Limited | Juniper Hotels vs. SINCLAIRS HOTELS ORD | Juniper Hotels vs. Apollo Sindoori Hotels |
| JBM Auto vs. The Indian Hotels | JBM Auto vs. Praxis Home Retail | JBM Auto vs. Juniper Hotels | JBM Auto vs. Zodiac Clothing |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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