Correlation Between Juniper Networks and DZS
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and DZS 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 DZS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and DZS Inc, you can compare the effects of market volatilities on Juniper Networks and DZS 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 DZS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and DZS.
Diversification Opportunities for Juniper Networks and DZS
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juniper and DZS is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and DZS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DZS Inc 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 DZS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DZS Inc has no effect on the direction of Juniper Networks i.e., Juniper Networks and DZS go up and down completely randomly.
Pair Corralation between Juniper Networks and DZS
Given the investment horizon of 90 days Juniper Networks is expected to generate 0.22 times more return on investment than DZS. However, Juniper Networks is 4.57 times less risky than DZS. It trades about 0.03 of its potential returns per unit of risk. DZS Inc is currently generating about -0.1 per unit of risk. If you would invest 3,151 in Juniper Networks on August 31, 2024 and sell it today you would earn a total of 456.00 from holding Juniper Networks or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 84.85% |
| Values | Daily Returns |
Juniper Networks vs. DZS Inc
Performance |
| Timeline |
| Juniper Networks |
| DZS Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Juniper Networks and DZS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and DZS
The main advantage of trading using opposite Juniper Networks and DZS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, DZS 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 DZS will offset losses from the drop in DZS's long position.| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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