Correlation Between Advanced Energy and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both Advanced Energy 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 Advanced Energy and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Energy Industries and Juniper Networks, you can compare the effects of market volatilities on Advanced Energy 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 Advanced Energy with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Energy and Juniper Networks.
Diversification Opportunities for Advanced Energy and Juniper Networks
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and Juniper is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Energy Industries and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Advanced Energy 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 Advanced Energy Industries 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 Advanced Energy i.e., Advanced Energy and Juniper Networks go up and down completely randomly.
Pair Corralation between Advanced Energy and Juniper Networks
Given the investment horizon of 90 days Advanced Energy Industries is expected to generate 1.91 times more return on investment than Juniper Networks. However, Advanced Energy is 1.91 times more volatile than Juniper Networks. It trades about 0.11 of its potential returns per unit of risk. Juniper Networks is currently generating about -0.18 per unit of risk. If you would invest 10,515 in Advanced Energy Industries on August 30, 2024 and sell it today you would earn a total of 942.00 from holding Advanced Energy Industries or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Energy Industries vs. Juniper Networks
Performance |
| Timeline |
| Advanced Energy Indu |
| Juniper Networks |
Advanced Energy and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Energy and Juniper Networks
The main advantage of trading using opposite Advanced Energy and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Energy 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.| Advanced Energy vs. First Solar | Advanced Energy vs. Sunrun Inc | Advanced Energy vs. Canadian Solar | Advanced Energy vs. SolarEdge Technologies |
| Juniper Networks vs. Knowles Cor | Juniper Networks vs. AudioCodes | Juniper Networks vs. Ituran Location and | Juniper Networks vs. Aviat Networks |
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.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |