Correlation Between Juniper Networks and Cambium Networks
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and Cambium 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 Juniper Networks and Cambium Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and Cambium Networks Corp, you can compare the effects of market volatilities on Juniper Networks and Cambium 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 Juniper Networks with a short position of Cambium Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and Cambium Networks.
Diversification Opportunities for Juniper Networks and Cambium Networks
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Juniper and Cambium is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Cambium Networks Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambium Networks Corp 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 Cambium Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambium Networks Corp has no effect on the direction of Juniper Networks i.e., Juniper Networks and Cambium Networks go up and down completely randomly.
Pair Corralation between Juniper Networks and Cambium Networks
Given the investment horizon of 90 days Juniper Networks is expected to under-perform the Cambium Networks. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Networks is 4.63 times less risky than Cambium Networks. The stock trades about -0.25 of its potential returns per unit of risk. The Cambium Networks Corp is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Cambium Networks Corp on November 1, 2024 and sell it today you would earn a total of 56.00 from holding Cambium Networks Corp or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Networks vs. Cambium Networks Corp
Performance |
| Timeline |
| Juniper Networks |
| Cambium Networks Corp |
Juniper Networks and Cambium Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and Cambium Networks
The main advantage of trading using opposite Juniper Networks and Cambium Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Cambium 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 Cambium Networks will offset losses from the drop in Cambium Networks' long position.| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
| Cambium Networks vs. Aviat Networks | Cambium Networks vs. Rimini Street | Cambium Networks vs. Airgain | Cambium Networks vs. Calix 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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