Correlation Between JHS Svendgaard and Juniper Hotels

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

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

Diversification Opportunities for JHS Svendgaard and Juniper Hotels

0.36

Correlation Coefficient

JHS Svendgaard  Juniper Hotels

Weak diversification

The 3 months correlation between JHS and Juniper is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding JHS Svendgaard Retail and Juniper Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Hotels and JHS Svendgaard 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 JHS Svendgaard Retail 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 JHS Svendgaard i.e., JHS Svendgaard and Juniper Hotels go up and down completely randomly.

Pair Corralation between JHS Svendgaard and Juniper Hotels

Assuming the 90 days trading horizon JHS Svendgaard is expected to generate 28.87 times less return on investment than Juniper Hotels. In addition to that, JHS Svendgaard is 1.3 times more volatile than Juniper Hotels. It trades about 0.0 of its total potential returns per unit of risk. Juniper Hotels is currently generating about 0.1 per unit of volatility. If you would invest  28,140  in Juniper Hotels on April 17, 2025 and sell it today you would earn a total of  3,705  from holding Juniper Hotels or generate 13.17% return on investment over 90 days.

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

JHS Svendgaard Retail  vs.  Juniper Hotels

JHS Svendgaard Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days JHS Svendgaard Retail has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, JHS Svendgaard is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Juniper Hotels

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Juniper Hotels are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Juniper Hotels reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JHS Svendgaard and Juniper Hotels

The main advantage of trading using opposite JHS Svendgaard and Juniper Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JHS Svendgaard 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 JHS Svendgaard Retail 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.