Correlation Between Juniper Hotels and UFO Moviez

Can any of the company-specific risk be diversified away by investing in both Juniper Hotels and UFO Moviez 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 UFO Moviez into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Juniper Hotels and UFO Moviez

0.81

Correlation Coefficient

Juniper Hotels  UFO Moviez

Very poor diversification

The 3 months correlation between Juniper and UFO is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Hotels and UFO Moviez India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UFO Moviez India 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 UFO Moviez. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UFO Moviez India has no effect on the direction of Juniper Hotels i.e., Juniper Hotels and UFO Moviez go up and down completely randomly.

Pair Corralation between Juniper Hotels and UFO Moviez

Assuming the 90 days trading horizon Juniper Hotels is expected to generate 0.86 times more return on investment than UFO Moviez. However, Juniper Hotels is 1.17 times less risky than UFO Moviez. It trades about -0.05 of its potential returns per unit of risk. UFO Moviez India is currently generating about -0.07 per unit of risk. If you would invest  40,045  in Juniper Hotels on September 5, 2024 and sell it today you would lose (3,065) from holding Juniper Hotels or give up 7.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Juniper Hotels  vs.  UFO Moviez India

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 latest unsteady performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

UFO Moviez India

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UFO Moviez India has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Juniper Hotels and UFO Moviez

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

The idea behind Juniper Hotels and UFO Moviez India 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..