Correlation Between Juniper Networks and Eshallgo
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and Eshallgo 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 Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and Eshallgo Class A, you can compare the effects of market volatilities on Juniper Networks and Eshallgo 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 Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and Eshallgo.
Diversification Opportunities for Juniper Networks and Eshallgo
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Juniper and Eshallgo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A 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 Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Juniper Networks i.e., Juniper Networks and Eshallgo go up and down completely randomly.
Pair Corralation between Juniper Networks and Eshallgo
Given the investment horizon of 90 days Juniper Networks is expected to generate 0.03 times more return on investment than Eshallgo. However, Juniper Networks is 35.42 times less risky than Eshallgo. It trades about 0.36 of its potential returns per unit of risk. Eshallgo Class A is currently generating about -0.27 per unit of risk. If you would invest 3,748 in Juniper Networks on October 23, 2024 and sell it today you would earn a total of 109.00 from holding Juniper Networks or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Networks vs. Eshallgo Class A
Performance |
| Timeline |
| Juniper Networks |
| Eshallgo Class A |
Juniper Networks and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and Eshallgo
The main advantage of trading using opposite Juniper Networks and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
| Eshallgo vs. Sanmina | Eshallgo vs. Plexus Corp | Eshallgo vs. Benchmark Electronics | Eshallgo vs. Integrated Media Technology |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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