Correlation Between Juniper Networks and Nushares ETF
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and Nushares ETF 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 Nushares ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and Nushares ETF Trust, you can compare the effects of market volatilities on Juniper Networks and Nushares ETF 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 Nushares ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and Nushares ETF.
Diversification Opportunities for Juniper Networks and Nushares ETF
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniper and Nushares is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Nushares ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nushares ETF Trust 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 Nushares ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nushares ETF Trust has no effect on the direction of Juniper Networks i.e., Juniper Networks and Nushares ETF go up and down completely randomly.
Pair Corralation between Juniper Networks and Nushares ETF
Given the investment horizon of 90 days Juniper Networks is expected to under-perform the Nushares ETF. In addition to that, Juniper Networks is 1.71 times more volatile than Nushares ETF Trust. It trades about -0.29 of its total potential returns per unit of risk. Nushares ETF Trust is currently generating about 0.31 per unit of volatility. If you would invest 2,919 in Nushares ETF Trust on September 4, 2024 and sell it today you would earn a total of 155.00 from holding Nushares ETF Trust or generate 5.31% 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. Nushares ETF Trust
Performance |
| Timeline |
| Juniper Networks |
| Nushares ETF Trust |
Juniper Networks and Nushares ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and Nushares ETF
The main advantage of trading using opposite Juniper Networks and Nushares ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Nushares ETF 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 Nushares ETF will offset losses from the drop in Nushares ETF's long position.| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
| Nushares ETF vs. Global X Funds | Nushares ETF vs. Dell Technologies | Nushares ETF vs. Juniper Networks | Nushares ETF vs. HUMANA INC |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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