Correlation Between Asana and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both Asana 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 Asana and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asana Inc and Juniper Networks, you can compare the effects of market volatilities on Asana 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 Asana with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asana and Juniper Networks.
Diversification Opportunities for Asana and Juniper Networks
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asana and Juniper is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Asana Inc and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Asana 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 Asana Inc 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 Asana i.e., Asana and Juniper Networks go up and down completely randomly.
Pair Corralation between Asana and Juniper Networks
Given the investment horizon of 90 days Asana Inc is expected to generate 2.25 times more return on investment than Juniper Networks. However, Asana is 2.25 times more volatile than Juniper Networks. It trades about 0.43 of its potential returns per unit of risk. Juniper Networks is currently generating about -0.25 per unit of risk. If you would invest 1,200 in Asana Inc on August 28, 2024 and sell it today you would earn a total of 371.00 from holding Asana Inc or generate 30.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asana Inc vs. Juniper Networks
Performance |
| Timeline |
| Asana Inc |
| Juniper Networks |
Asana and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asana and Juniper Networks
The main advantage of trading using opposite Asana and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asana 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 Asana Inc 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.| Juniper Networks vs. Ichor Holdings | Juniper Networks vs. Fabrinet | Juniper Networks vs. Hello Group | Juniper Networks vs. Ultra Clean Holdings |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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