Correlation Between Juniper Networks and First Trust
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and First Trust 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 First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and First Trust Exchange Traded, you can compare the effects of market volatilities on Juniper Networks and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and First Trust.
Diversification Opportunities for Juniper Networks and First Trust
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniper and First is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and First Trust Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Exchange 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Exchange has no effect on the direction of Juniper Networks i.e., Juniper Networks and First Trust go up and down completely randomly.
Pair Corralation between Juniper Networks and First Trust
Given the investment horizon of 90 days Juniper Networks is expected to generate 1.85 times more return on investment than First Trust. However, Juniper Networks is 1.85 times more volatile than First Trust Exchange Traded. It trades about 0.04 of its potential returns per unit of risk. First Trust Exchange Traded is currently generating about 0.07 per unit of risk. If you would invest 2,974 in Juniper Networks on September 12, 2024 and sell it today you would earn a total of 749.00 from holding Juniper Networks or generate 25.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Networks vs. First Trust Exchange Traded
Performance |
| Timeline |
| Juniper Networks |
| First Trust Exchange |
Juniper Networks and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and First Trust
The main advantage of trading using opposite Juniper Networks and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Juniper Networks vs. Victory Integrity Smallmid Cap | Juniper Networks vs. Hilton Worldwide Holdings | Juniper Networks vs. NVIDIA | Juniper Networks vs. JPMorgan Chase Co |
| First Trust vs. FT Vest Equity | First Trust vs. Northern Lights | First Trust vs. Dimensional International High | First Trust vs. JPMorgan Fundamental Data |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |