Correlation Between Juniper Hotels and Rico Auto
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By analyzing existing cross correlation between Juniper Hotels and Rico Auto Industries, you can compare the effects of market volatilities on Juniper Hotels and Rico 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 Rico Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and Rico Auto.
Diversification Opportunities for Juniper Hotels and Rico Auto
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Juniper and Rico is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and Rico Auto Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rico Auto Industries 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 Rico Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rico Auto Industries has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and Rico Auto go up and down completely randomly.
Pair Corralation between Juniper Hotels and Rico Auto
Assuming the 90 days trading horizon Juniper Hotels is expected to under-perform the Rico Auto. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Hotels is 1.75 times less risky than Rico Auto. The stock trades about -0.15 of its potential returns per unit of risk. The Rico Auto Industries is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,527 in Rico Auto Industries on October 24, 2024 and sell it today you would earn a total of 342.00 from holding Rico Auto Industries or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Hotels vs. Rico Auto Industries
Performance |
| Timeline |
| Juniper Hotels |
| Rico Auto Industries |
Juniper Hotels and Rico Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Hotels and Rico Auto
The main advantage of trading using opposite Juniper Hotels and Rico Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, Rico 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 Rico Auto will offset losses from the drop in Rico Auto's long position.| Juniper Hotels vs. Reliance Industries Limited | Juniper Hotels vs. Life Insurance | Juniper Hotels vs. Indian Oil | Juniper Hotels vs. Oil Natural Gas |
| Rico Auto vs. Viceroy Hotels Limited | Rico Auto vs. Osia Hyper Retail | Rico Auto vs. Juniper Hotels | Rico Auto vs. V Mart Retail 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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