Correlation Between JLEN Environmental and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both JLEN Environmental 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 JLEN Environmental and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLEN Environmental Assets and Juniper Networks, you can compare the effects of market volatilities on JLEN Environmental 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 JLEN Environmental with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLEN Environmental and Juniper Networks.
Diversification Opportunities for JLEN Environmental and Juniper Networks
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JLEN and Juniper is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding JLEN Environmental Assets and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and JLEN Environmental 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 JLEN Environmental Assets 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 JLEN Environmental i.e., JLEN Environmental and Juniper Networks go up and down completely randomly.
Pair Corralation between JLEN Environmental and Juniper Networks
Assuming the 90 days trading horizon JLEN Environmental Assets is expected to under-perform the Juniper Networks. But the stock apears to be less risky and, when comparing its historical volatility, JLEN Environmental Assets is 1.17 times less risky than Juniper Networks. The stock trades about -0.06 of its potential returns per unit of risk. The Juniper Networks is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,061 in Juniper Networks on October 17, 2024 and sell it today you would earn a total of 794.00 from holding Juniper Networks or generate 25.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.79% |
| Values | Daily Returns |
JLEN Environmental Assets vs. Juniper Networks
Performance |
| Timeline |
| JLEN Environmental Assets |
| Juniper Networks |
JLEN Environmental and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLEN Environmental and Juniper Networks
The main advantage of trading using opposite JLEN Environmental and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLEN Environmental 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.| JLEN Environmental vs. Universal Display Corp | JLEN Environmental vs. Blackstone Loan Financing | JLEN Environmental vs. Metro Bank PLC | JLEN Environmental vs. Sydbank |
| Juniper Networks vs. JLEN Environmental Assets | Juniper Networks vs. Scandinavian Tobacco Group | Juniper Networks vs. Vulcan Materials Co | Juniper Networks vs. Monster Beverage Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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