Correlation Between Aquagold International and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both Aquagold International 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 Aquagold International and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Juniper Networks, you can compare the effects of market volatilities on Aquagold International 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 Aquagold International with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Juniper Networks.
Diversification Opportunities for Aquagold International and Juniper Networks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Juniper is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Aquagold International 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 Aquagold International 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 Aquagold International i.e., Aquagold International and Juniper Networks go up and down completely randomly.
Pair Corralation between Aquagold International and Juniper Networks
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Juniper Networks. In addition to that, Aquagold International is 3.12 times more volatile than Juniper Networks. It trades about 0.0 of its total potential returns per unit of risk. Juniper Networks is currently generating about 0.04 per unit of volatility. If you would invest 2,979 in Juniper Networks on September 4, 2024 and sell it today you would earn a total of 583.00 from holding Juniper Networks or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Aquagold International vs. Juniper Networks
Performance |
| Timeline |
| Aquagold International |
| Juniper Networks |
Aquagold International and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Juniper Networks
The main advantage of trading using opposite Aquagold International and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International 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.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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