Correlation Between Juniper Networks and Ituran Location
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and Ituran Location 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 Ituran Location into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and Ituran Location and, you can compare the effects of market volatilities on Juniper Networks and Ituran Location 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 Ituran Location. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and Ituran Location.
Diversification Opportunities for Juniper Networks and Ituran Location
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Juniper and Ituran is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Ituran Location and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ituran Location 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 Ituran Location. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ituran Location has no effect on the direction of Juniper Networks i.e., Juniper Networks and Ituran Location go up and down completely randomly.
Pair Corralation between Juniper Networks and Ituran Location
Given the investment horizon of 90 days Juniper Networks is expected to generate 1.59 times less return on investment than Ituran Location. But when comparing it to its historical volatility, Juniper Networks is 2.05 times less risky than Ituran Location. It trades about 0.05 of its potential returns per unit of risk. Ituran Location and is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,693 in Ituran Location and on August 24, 2024 and sell it today you would earn a total of 157.00 from holding Ituran Location and or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Networks vs. Ituran Location and
Performance |
| Timeline |
| Juniper Networks |
| Ituran Location |
Juniper Networks and Ituran Location Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and Ituran Location
The main advantage of trading using opposite Juniper Networks and Ituran Location positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Ituran Location 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 Ituran Location will offset losses from the drop in Ituran Location's long position.| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
| Ituran Location vs. Silicom | Ituran Location vs. Allot Communications | Ituran Location vs. Sapiens International | Ituran Location vs. Formula Systems 1985 |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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