Correlation Between Paramount Communications and Juniper Hotels
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By analyzing existing cross correlation between Paramount Communications Limited and Juniper Hotels, you can compare the effects of market volatilities on Paramount 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 Paramount Communications with a short position of Juniper Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paramount Communications and Juniper Hotels.
Diversification Opportunities for Paramount Communications and Juniper Hotels
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Paramount and Juniper is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Paramount Communications Limit and Juniper Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Hotels and Paramount 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 Paramount 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 Paramount Communications i.e., Paramount Communications and Juniper Hotels go up and down completely randomly.
Pair Corralation between Paramount Communications and Juniper Hotels
Assuming the 90 days trading horizon Paramount Communications Limited is expected to under-perform the Juniper Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Paramount Communications Limited is 1.43 times less risky than Juniper Hotels. The stock trades about -0.01 of its potential returns per unit of risk. The Juniper Hotels is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 33,400 in Juniper Hotels on August 30, 2024 and sell it today you would earn a total of 2,760 from holding Juniper Hotels or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Paramount Communications Limit vs. Juniper Hotels
Performance |
| Timeline |
| Paramount Communications |
| Juniper Hotels |
Paramount Communications and Juniper Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paramount Communications and Juniper Hotels
The main advantage of trading using opposite Paramount Communications and Juniper Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paramount 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.| Paramount Communications vs. Reliance Industries Limited | Paramount Communications vs. Life Insurance | Paramount Communications vs. India Glycols Limited | Paramount Communications vs. Indo Borax 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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