Correlation Between MMTC and Juniper Hotels
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By analyzing existing cross correlation between MMTC Limited and Juniper Hotels, you can compare the effects of market volatilities on MMTC 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 MMTC with a short position of Juniper Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMTC and Juniper Hotels.
Diversification Opportunities for MMTC and Juniper Hotels
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MMTC and Juniper is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding MMTC Limited and Juniper Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Hotels and MMTC 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 MMTC Limited 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 MMTC i.e., MMTC and Juniper Hotels go up and down completely randomly.
Pair Corralation between MMTC and Juniper Hotels
Assuming the 90 days trading horizon MMTC Limited is expected to generate 1.3 times more return on investment than Juniper Hotels. However, MMTC is 1.3 times more volatile than Juniper Hotels. It trades about 0.06 of its potential returns per unit of risk. Juniper Hotels is currently generating about -0.01 per unit of risk. If you would invest 3,940 in MMTC Limited on August 30, 2024 and sell it today you would earn a total of 3,877 from holding MMTC Limited or generate 98.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 38.43% |
| Values | Daily Returns |
MMTC Limited vs. Juniper Hotels
Performance |
| Timeline |
| MMTC Limited |
| Juniper Hotels |
MMTC and Juniper Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMTC and Juniper Hotels
The main advantage of trading using opposite MMTC and Juniper Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMTC 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.| MMTC vs. Entero Healthcare Solutions | MMTC vs. Global Health Limited | MMTC vs. SANOFI S HEALTHC | MMTC vs. Privi Speciality Chemicals |
| Juniper Hotels vs. Hemisphere Properties India | Juniper Hotels vs. India Glycols Limited | Juniper Hotels vs. Indo Borax Chemicals | Juniper Hotels vs. Kingfa Science Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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