Correlation Between Juniper Networks and American Century
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and American Century 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 American Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and American Century ETF, you can compare the effects of market volatilities on Juniper Networks and American Century 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 American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and American Century.
Diversification Opportunities for Juniper Networks and American Century
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Juniper and American is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and American Century ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century ETF 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 American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century ETF has no effect on the direction of Juniper Networks i.e., Juniper Networks and American Century go up and down completely randomly.
Pair Corralation between Juniper Networks and American Century
Given the investment horizon of 90 days Juniper Networks is expected to generate 1.08 times less return on investment than American Century. In addition to that, Juniper Networks is 1.92 times more volatile than American Century ETF. It trades about 0.07 of its total potential returns per unit of risk. American Century ETF is currently generating about 0.14 per unit of volatility. If you would invest 5,429 in American Century ETF on September 3, 2024 and sell it today you would earn a total of 1,693 from holding American Century ETF or generate 31.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Networks vs. American Century ETF
Performance |
| Timeline |
| Juniper Networks |
| American Century ETF |
Juniper Networks and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and American Century
The main advantage of trading using opposite Juniper Networks and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
| American Century vs. Global X Funds | American Century vs. Dell Technologies | American Century vs. Juniper Networks | American Century vs. HUMANA INC |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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