Correlation Between Ortel Communications and Juniper Hotels
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By analyzing existing cross correlation between Ortel Communications Limited and Juniper Hotels, you can compare the effects of market volatilities on Ortel Communications 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 Ortel Communications with a short position of Juniper Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ortel Communications and Juniper Hotels.
Diversification Opportunities for Ortel Communications and Juniper Hotels
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ortel and Juniper is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ortel Communications Limited and Juniper Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Hotels and Ortel Communications 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 Ortel Communications 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 Ortel Communications i.e., Ortel Communications and Juniper Hotels go up and down completely randomly.
Pair Corralation between Ortel Communications and Juniper Hotels
Assuming the 90 days trading horizon Ortel Communications Limited is expected to under-perform the Juniper Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Ortel Communications Limited is 1.69 times less risky than Juniper Hotels. The stock trades about -0.4 of its potential returns per unit of risk. The Juniper Hotels is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 32,930 in Juniper Hotels on September 3, 2024 and sell it today you would earn a total of 2,960 from holding Juniper Hotels or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ortel Communications Limited vs. Juniper Hotels
Performance |
| Timeline |
| Ortel Communications |
| Juniper Hotels |
Ortel Communications and Juniper Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ortel Communications and Juniper Hotels
The main advantage of trading using opposite Ortel Communications and Juniper Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ortel Communications 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.| Ortel Communications vs. Shipping | Ortel Communications vs. Indo Borax Chemicals | Ortel Communications vs. Kingfa Science Technology | Ortel Communications vs. Alkali Metals Limited |
| Juniper Hotels vs. Paramount Communications Limited | Juniper Hotels vs. Data Patterns Limited | Juniper Hotels vs. Newgen Software Technologies | Juniper Hotels vs. Jaypee Infratech 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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