Correlation Between HCL Technologies and Juniper Hotels

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

By analyzing existing cross correlation between HCL Technologies Limited and Juniper Hotels, you can compare the effects of market volatilities on HCL Technologies 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 HCL Technologies with a short position of Juniper Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCL Technologies and Juniper Hotels.

Diversification Opportunities for HCL Technologies and Juniper Hotels

0.25

Correlation Coefficient

HCL Technologies  Juniper Hotels

Modest diversification

The 3 months correlation between HCL and Juniper is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding HCL Technologies Limited and Juniper Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Hotels and HCL Technologies 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 HCL Technologies 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 HCL Technologies i.e., HCL Technologies and Juniper Hotels go up and down completely randomly.

Pair Corralation between HCL Technologies and Juniper Hotels

Assuming the 90 days trading horizon HCL Technologies is expected to generate 2.17 times less return on investment than Juniper Hotels. But when comparing it to its historical volatility, HCL Technologies Limited is 1.39 times less risky than Juniper Hotels. It trades about 0.07 of its potential returns per unit of risk. Juniper Hotels is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  27,820  in Juniper Hotels on April 20, 2025 and sell it today you would earn a total of  4,345  from holding Juniper Hotels or generate 15.62% return on investment over 90 days.

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

HCL Technologies Limited  vs.  Juniper Hotels

HCL Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HCL Technologies Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical and fundamental indicators, HCL Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Juniper Hotels

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Juniper Hotels are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Juniper Hotels reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HCL Technologies and Juniper Hotels

The main advantage of trading using opposite HCL Technologies and Juniper Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCL Technologies 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.

The idea behind HCL Technologies Limited and Juniper 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.