Correlation Between Juniper Networks and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and Cornish Metals 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 Networks and Cornish Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and Cornish Metals, you can compare the effects of market volatilities on Juniper Networks and Cornish Metals 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 Networks with a short position of Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and Cornish Metals.
Diversification Opportunities for Juniper Networks and Cornish Metals
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniper and Cornish is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish Metals and Juniper Networks 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 Networks are associated (or correlated) with Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of Juniper Networks i.e., Juniper Networks and Cornish Metals go up and down completely randomly.
Pair Corralation between Juniper Networks and Cornish Metals
Assuming the 90 days trading horizon Juniper Networks is expected to generate 6.92 times less return on investment than Cornish Metals. But when comparing it to its historical volatility, Juniper Networks is 4.43 times less risky than Cornish Metals. It trades about 0.05 of its potential returns per unit of risk. Cornish Metals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 670.00 in Cornish Metals on September 21, 2024 and sell it today you would earn a total of 205.00 from holding Cornish Metals or generate 30.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Juniper Networks vs. Cornish Metals
Performance |
| Timeline |
| Juniper Networks |
| Cornish Metals |
Juniper Networks and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and Cornish Metals
The main advantage of trading using opposite Juniper Networks and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Cornish Metals 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 Cornish Metals will offset losses from the drop in Cornish Metals' long position.| Juniper Networks vs. Cornish Metals | Juniper Networks vs. Hochschild Mining plc | Juniper Networks vs. European Metals Holdings | Juniper Networks vs. Global Net Lease |
| Cornish Metals vs. Verizon Communications | Cornish Metals vs. Smithson Investment Trust | Cornish Metals vs. Batm Advanced Communications | Cornish Metals vs. Livermore Investments Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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