Correlation Between Juniper Hotels and Apollo Sindoori

Can any of the company-specific risk be diversified away by investing in both Juniper Hotels and Apollo Sindoori at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Juniper Hotels and Apollo Sindoori into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Juniper Hotels and Apollo Sindoori Hotels, you can compare the effects of market volatilities on Juniper Hotels and Apollo Sindoori 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 Apollo Sindoori. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Hotels and Apollo Sindoori.

Diversification Opportunities for Juniper Hotels and Apollo Sindoori

0.18

Correlation Coefficient

Juniper Hotels  Apollo Sindoori

Average diversification

The 3 months correlation between Juniper and Apollo is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and Apollo Sindoori Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Sindoori Hotels 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 Apollo Sindoori. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Sindoori Hotels has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and Apollo Sindoori go up and down completely randomly.

Pair Corralation between Juniper Hotels and Apollo Sindoori

Assuming the 90 days trading horizon Juniper Hotels is expected to under-perform the Apollo Sindoori. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Hotels is 1.15 times less risky than Apollo Sindoori. The stock trades about -0.01 of its potential returns per unit of risk. The Apollo Sindoori Hotels is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  116,686  in Apollo Sindoori Hotels on September 15, 2024 and sell it today you would earn a total of  65,134  from holding Apollo Sindoori Hotels or generate 55.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	40.57%
Values	Daily Returns

Juniper Hotels  vs.  Apollo Sindoori Hotels

Juniper Hotels

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Juniper Hotels has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Juniper Hotels is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Apollo Sindoori Hotels

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apollo Sindoori Hotels are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical indicators, Apollo Sindoori may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Juniper Hotels and Apollo Sindoori

The main advantage of trading using opposite Juniper Hotels and Apollo Sindoori positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Hotels position performs unexpectedly, Apollo Sindoori 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 Apollo Sindoori will offset losses from the drop in Apollo Sindoori's long position.

The idea behind Juniper Hotels and Apollo Sindoori Hotels pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.