Correlation Between Global X and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both Global X 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 Global X and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global X Funds and Juniper Networks, you can compare the effects of market volatilities on Global X 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 Global X with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Juniper Networks.
Diversification Opportunities for Global X and Juniper Networks
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Juniper is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Global X Funds and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Global X 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 Global X Funds 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 Global X i.e., Global X and Juniper Networks go up and down completely randomly.
Pair Corralation between Global X and Juniper Networks
Considering the 90-day investment horizon Global X Funds is expected to generate 0.59 times more return on investment than Juniper Networks. However, Global X Funds is 1.68 times less risky than Juniper Networks. It trades about -0.22 of its potential returns per unit of risk. Juniper Networks is currently generating about -0.26 per unit of risk. If you would invest 2,743 in Global X Funds on August 30, 2024 and sell it today you would lose (106.00) from holding Global X Funds or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global X Funds vs. Juniper Networks
Performance |
| Timeline |
| Global X Funds |
| Juniper Networks |
Global X and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global X and Juniper Networks
The main advantage of trading using opposite Global X and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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.| Global X vs. ABIVAX Socit Anonyme | Global X vs. HUMANA INC | Global X vs. SCOR PK | Global X vs. Aquagold International |
| Juniper Networks vs. NETGEAR | Juniper Networks vs. Clearfield | Juniper Networks vs. ABIVAX Socit Anonyme | Juniper Networks vs. Morningstar Unconstrained Allocation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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