Correlation Between Chocoladefabriken and Juniper Networks

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Can any of the company-specific risk be diversified away by investing in both Chocoladefabriken and Juniper Networks 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 Chocoladefabriken and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chocoladefabriken Lindt Spruengli and Juniper Networks, you can compare the effects of market volatilities on Chocoladefabriken and Juniper Networks 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 Chocoladefabriken with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chocoladefabriken and Juniper Networks.

Diversification Opportunities for Chocoladefabriken and Juniper Networks

ChocoladefabrikenJuniperDiversified AwayChocoladefabrikenJuniperDiversified Away100%
-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Chocoladefabriken and Juniper is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Chocoladefabriken Lindt Spruen and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli are associated (or correlated) with Juniper Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper Networks has no effect on the direction of Chocoladefabriken i.e., Chocoladefabriken and Juniper Networks go up and down completely randomly.

Pair Corralation between Chocoladefabriken and Juniper Networks

Assuming the 90 days trading horizon Chocoladefabriken Lindt Spruengli is expected to generate 0.46 times more return on investment than Juniper Networks. However, Chocoladefabriken Lindt Spruengli is 2.16 times less risky than Juniper Networks. It trades about 0.07 of its potential returns per unit of risk. Juniper Networks is currently generating about -0.14 per unit of risk. If you would invest  10,020,000  in Chocoladefabriken Lindt Spruengli on November 15, 2024 and sell it today you would earn a total of  140,000  from holding Chocoladefabriken Lindt Spruengli or generate 1.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Chocoladefabriken Lindt Spruen  vs.  Juniper Networks

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-8-6-4-202
JavaScript chart by amCharts 3.21.150QKN 0JPH
       Timeline  
Chocoladefabriken Lindt 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Chocoladefabriken Lindt Spruengli are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Chocoladefabriken is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb97,00098,00099,000100,000101,000102,000103,000
Juniper Networks 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Juniper Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Juniper Networks is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb343536373839

Chocoladefabriken and Juniper Networks Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.79-2.09-1.39-0.69-0.01170.71.432.152.873.6 0.10.20.30.40.5
JavaScript chart by amCharts 3.21.150QKN 0JPH
       Returns  

Pair Trading with Chocoladefabriken and Juniper Networks

The main advantage of trading using opposite Chocoladefabriken and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chocoladefabriken position performs unexpectedly, Juniper Networks 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 Networks will offset losses from the drop in Juniper Networks' long position.
The idea behind Chocoladefabriken Lindt Spruengli and Juniper Networks 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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