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
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Juniper and Eshallgo is -0.58. 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 under-perform the Eshallgo. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Networks is 6.12 times less risky than Eshallgo. The stock trades about -0.25 of its potential returns per unit of risk. The Eshallgo Class A is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 236.00 in Eshallgo Class A on August 28, 2024 and sell it today you would earn a total of 156.00 from holding Eshallgo Class A or generate 66.1% 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. 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. Ichor Holdings | Juniper Networks vs. Fabrinet | Juniper Networks vs. Hello Group | Juniper Networks vs. Ultra Clean Holdings |
| Eshallgo vs. Lululemon Athletica | Eshallgo vs. Asbury Automotive Group | Eshallgo vs. SunLink Health Systems | Eshallgo vs. Simon Property Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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