Correlation Between Juniper Hotels and Maharashtra Scooters
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By analyzing existing cross correlation between Juniper Hotels and Maharashtra Scooters Limited, you can compare the effects of market volatilities on Juniper Hotels and Maharashtra Scooters 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 Maharashtra Scooters. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and Maharashtra Scooters.
Diversification Opportunities for Juniper Hotels and Maharashtra Scooters
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Juniper and Maharashtra is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and Maharashtra Scooters Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maharashtra Scooters 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 Maharashtra Scooters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maharashtra Scooters has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and Maharashtra Scooters go up and down completely randomly.
Pair Corralation between Juniper Hotels and Maharashtra Scooters
Assuming the 90 days trading horizon Juniper Hotels is expected to under-perform the Maharashtra Scooters. In addition to that, Juniper Hotels is 2.31 times more volatile than Maharashtra Scooters Limited. It trades about -0.19 of its total potential returns per unit of risk. Maharashtra Scooters Limited is currently generating about -0.03 per unit of volatility. If you would invest 942,315 in Maharashtra Scooters Limited on October 30, 2024 and sell it today you would lose (16,190) from holding Maharashtra Scooters Limited or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Hotels vs. Maharashtra Scooters Limited
Performance |
| Timeline |
| Juniper Hotels |
| Maharashtra Scooters |
Juniper Hotels and Maharashtra Scooters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and Maharashtra Scooters
The main advantage of trading using opposite Juniper Hotels and Maharashtra Scooters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, Maharashtra Scooters 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 Maharashtra Scooters will offset losses from the drop in Maharashtra Scooters' long position.| Juniper Hotels vs. State Bank of | Juniper Hotels vs. Life Insurance | Juniper Hotels vs. HDFC Bank Limited | Juniper Hotels vs. ICICI Bank Limited |
| Maharashtra Scooters vs. Southern Petrochemicals Industries | Maharashtra Scooters vs. Yatra Online Limited | Maharashtra Scooters vs. DIAMINES AND CHEMICALS | Maharashtra Scooters vs. Total Transport Systems |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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