Correlation Between Lemon Tree and Juniper Hotels
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By analyzing existing cross correlation between Lemon Tree Hotels and Juniper Hotels, you can compare the effects of market volatilities on Lemon Tree and Juniper Hotels 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 Lemon Tree with a short position of Juniper Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lemon Tree and Juniper Hotels.
Diversification Opportunities for Lemon Tree and Juniper Hotels
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lemon and Juniper is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lemon Tree Hotels and Juniper Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Hotels and Lemon Tree 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 Lemon Tree Hotels are associated (or correlated) with Juniper Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper Hotels has no effect on the direction of Lemon Tree i.e., Lemon Tree and Juniper Hotels go up and down completely randomly.
Pair Corralation between Lemon Tree and Juniper Hotels
Assuming the 90 days trading horizon Lemon Tree Hotels is expected to generate 0.81 times more return on investment than Juniper Hotels. However, Lemon Tree Hotels is 1.23 times less risky than Juniper Hotels. It trades about 0.07 of its potential returns per unit of risk. Juniper Hotels is currently generating about -0.05 per unit of risk. If you would invest 12,196 in Lemon Tree Hotels on August 28, 2024 and sell it today you would earn a total of 605.00 from holding Lemon Tree Hotels or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lemon Tree Hotels vs. Juniper Hotels
Performance |
| Timeline |
| Lemon Tree Hotels |
| Juniper Hotels |
Lemon Tree and Juniper Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lemon Tree and Juniper Hotels
The main advantage of trading using opposite Lemon Tree and Juniper Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lemon Tree position performs unexpectedly, Juniper Hotels 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 Juniper Hotels will offset losses from the drop in Juniper Hotels' long position.| Lemon Tree vs. MMTC Limited | Lemon Tree vs. Kingfa Science Technology | Lemon Tree vs. Rico Auto Industries | Lemon Tree vs. GACM Technologies Limited |
| Juniper Hotels vs. Life Insurance | Juniper Hotels vs. V2 Retail Limited | Juniper Hotels vs. Pritish Nandy Communications | Juniper Hotels vs. Varun Beverages 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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