Correlation Between Iteris and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both Iteris 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 Iteris and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iteris Inc and Juniper Networks, you can compare the effects of market volatilities on Iteris 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 Iteris with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iteris and Juniper Networks.
Diversification Opportunities for Iteris and Juniper Networks
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Iteris and Juniper is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding Iteris Inc and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Iteris 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 Iteris 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 Iteris i.e., Iteris and Juniper Networks go up and down completely randomly.
Pair Corralation between Iteris and Juniper Networks
Considering the 90-day investment horizon Iteris Inc is expected to generate 30.2 times more return on investment than Juniper Networks. However, Iteris is 30.2 times more volatile than Juniper Networks. It trades about 0.05 of its potential returns per unit of risk. Juniper Networks is currently generating about 0.03 per unit of risk. If you would invest 292.00 in Iteris Inc on August 31, 2024 and sell it today you would earn a total of 26,357 from holding Iteris Inc or generate 9026.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.17% |
| Values | Daily Returns |
Iteris Inc vs. Juniper Networks
Performance |
| Timeline |
| Iteris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Juniper Networks |
Iteris and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iteris and Juniper Networks
The main advantage of trading using opposite Iteris and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteris 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.| Iteris vs. Optical Cable | Iteris vs. KVH Industries | Iteris vs. Knowles Cor | Iteris vs. Comtech Telecommunications Corp |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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