Correlation Between Juniper Networks and CommScope Holding
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and CommScope Holding 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 CommScope Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and CommScope Holding Co, you can compare the effects of market volatilities on Juniper Networks and CommScope Holding 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 CommScope Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and CommScope Holding.
Diversification Opportunities for Juniper Networks and CommScope Holding
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Juniper and CommScope is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and CommScope Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CommScope Holding 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 CommScope Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CommScope Holding has no effect on the direction of Juniper Networks i.e., Juniper Networks and CommScope Holding go up and down completely randomly.
Pair Corralation between Juniper Networks and CommScope Holding
Given the investment horizon of 90 days Juniper Networks is expected to generate 0.19 times more return on investment than CommScope Holding. However, Juniper Networks is 5.36 times less risky than CommScope Holding. It trades about -0.25 of its potential returns per unit of risk. CommScope Holding Co is currently generating about -0.16 per unit of risk. If you would invest 3,895 in Juniper Networks on August 31, 2024 and sell it today you would lose (288.00) from holding Juniper Networks or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Networks vs. CommScope Holding Co
Performance |
| Timeline |
| Juniper Networks |
| CommScope Holding |
Juniper Networks and CommScope Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and CommScope Holding
The main advantage of trading using opposite Juniper Networks and CommScope Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, CommScope Holding 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 CommScope Holding will offset losses from the drop in CommScope Holding's long position.| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
| CommScope Holding vs. Harmonic | CommScope Holding vs. NETGEAR | CommScope Holding vs. Comtech Telecommunications Corp | CommScope Holding vs. ADTRAN 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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