Correlation Between Juniper Networks and Zinc Media
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and Zinc Media 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 Zinc Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and Zinc Media Group, you can compare the effects of market volatilities on Juniper Networks and Zinc Media 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 Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and Zinc Media.
Diversification Opportunities for Juniper Networks and Zinc Media
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juniper and Zinc is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc Media Group 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 Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of Juniper Networks i.e., Juniper Networks and Zinc Media go up and down completely randomly.
Pair Corralation between Juniper Networks and Zinc Media
Assuming the 90 days trading horizon Juniper Networks is expected to generate 0.68 times more return on investment than Zinc Media. However, Juniper Networks is 1.47 times less risky than Zinc Media. It trades about 0.03 of its potential returns per unit of risk. Zinc Media Group is currently generating about -0.04 per unit of risk. If you would invest 3,046 in Juniper Networks on September 23, 2024 and sell it today you would earn a total of 698.00 from holding Juniper Networks or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.97% |
| Values | Daily Returns |
Juniper Networks vs. Zinc Media Group
Performance |
| Timeline |
| Juniper Networks |
| Zinc Media Group |
Juniper Networks and Zinc Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and Zinc Media
The main advantage of trading using opposite Juniper Networks and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Zinc Media 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 Zinc Media will offset losses from the drop in Zinc Media's long position.| Juniper Networks vs. Zinc Media Group | Juniper Networks vs. Kinnevik Investment AB | Juniper Networks vs. Live Nation Entertainment | Juniper Networks vs. Lowland Investment Co |
| Zinc Media vs. SupplyMe Capital PLC | Zinc Media vs. Lloyds Banking Group | Zinc Media vs. Premier African Minerals | Zinc Media vs. SANTANDER UK 8 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |