Correlation Between Juniper Networks and AmpliTech
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and AmpliTech 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 Juniper Networks and AmpliTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and AmpliTech Group, you can compare the effects of market volatilities on Juniper Networks and AmpliTech 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 Juniper Networks with a short position of AmpliTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and AmpliTech.
Diversification Opportunities for Juniper Networks and AmpliTech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Juniper and AmpliTech is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and AmpliTech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmpliTech Group and Juniper Networks 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 Juniper Networks are associated (or correlated) with AmpliTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmpliTech Group has no effect on the direction of Juniper Networks i.e., Juniper Networks and AmpliTech go up and down completely randomly.
Pair Corralation between Juniper Networks and AmpliTech
Given the investment horizon of 90 days Juniper Networks is expected to under-perform the AmpliTech. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Networks is 28.33 times less risky than AmpliTech. The stock trades about -0.25 of its potential returns per unit of risk. The AmpliTech Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2.30 in AmpliTech Group on August 28, 2024 and sell it today you would earn a total of 0.90 from holding AmpliTech Group or generate 39.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Networks vs. AmpliTech Group
Performance |
| Timeline |
| Juniper Networks |
| AmpliTech Group |
Juniper Networks and AmpliTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and AmpliTech
The main advantage of trading using opposite Juniper Networks and AmpliTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, AmpliTech 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 AmpliTech will offset losses from the drop in AmpliTech's long position.| Juniper Networks vs. Ichor Holdings | Juniper Networks vs. Fabrinet | Juniper Networks vs. Hello Group | Juniper Networks vs. Ultra Clean Holdings |
| AmpliTech vs. Amplitech Group | AmpliTech vs. Advent Technologies Holdings | AmpliTech vs. Cyclo Therapeutics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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