Correlation Between Juniper Hotels and Lemon Tree
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By analyzing existing cross correlation between Juniper Hotels and Lemon Tree Hotels, you can compare the effects of market volatilities on Juniper Hotels and Lemon Tree 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 Lemon Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and Lemon Tree.
Diversification Opportunities for Juniper Hotels and Lemon Tree
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juniper and Lemon is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and Lemon Tree Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lemon Tree 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 Lemon Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lemon Tree Hotels has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and Lemon Tree go up and down completely randomly.
Pair Corralation between Juniper Hotels and Lemon Tree
Assuming the 90 days trading horizon Juniper Hotels is expected to under-perform the Lemon Tree. In addition to that, Juniper Hotels is 1.23 times more volatile than Lemon Tree Hotels. It trades about -0.04 of its total potential returns per unit of risk. Lemon Tree Hotels is currently generating about 0.05 per unit of volatility. If you would invest 9,665 in Lemon Tree Hotels on August 25, 2024 and sell it today you would earn a total of 2,835 from holding Lemon Tree Hotels or generate 29.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 56.31% |
| Values | Daily Returns |
Juniper Hotels vs. Lemon Tree Hotels
Performance |
| Timeline |
| Juniper Hotels |
| Lemon Tree Hotels |
Juniper Hotels and Lemon Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and Lemon Tree
The main advantage of trading using opposite Juniper Hotels and Lemon Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, Lemon Tree 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 Lemon Tree will offset losses from the drop in Lemon Tree'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 |
| Lemon Tree vs. Reliance Industries Limited | Lemon Tree vs. Indian Oil | Lemon Tree vs. HDFC Bank Limited | Lemon Tree vs. Divis Laboratories Limited |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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