Correlation Between Juniper Networks and Infinera
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and Infinera 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 Infinera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and Infinera, you can compare the effects of market volatilities on Juniper Networks and Infinera 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 Infinera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and Infinera.
Diversification Opportunities for Juniper Networks and Infinera
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Juniper and Infinera is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Infinera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinera 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 Infinera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinera has no effect on the direction of Juniper Networks i.e., Juniper Networks and Infinera go up and down completely randomly.
Pair Corralation between Juniper Networks and Infinera
Given the investment horizon of 90 days Juniper Networks is expected to under-perform the Infinera. In addition to that, Juniper Networks is 2.22 times more volatile than Infinera. It trades about -0.35 of its total potential returns per unit of risk. Infinera is currently generating about -0.1 per unit of volatility. If you would invest 669.00 in Infinera on August 24, 2024 and sell it today you would lose (8.00) from holding Infinera or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Juniper Networks vs. Infinera
Performance |
| Timeline |
| Juniper Networks |
| Infinera |
Juniper Networks and Infinera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and Infinera
The main advantage of trading using opposite Juniper Networks and Infinera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Infinera 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 Infinera will offset losses from the drop in Infinera's long position.| Juniper Networks vs. Eshallgo Class A | Juniper Networks vs. Amtech Systems | Juniper Networks vs. Gold Fields Ltd | Juniper Networks vs. Aegean Airlines SA |
| Infinera vs. Hewlett Packard Enterprise | Infinera vs. Juniper Networks | Infinera vs. Ciena Corp | Infinera vs. Motorola Solutions |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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