Correlation Between Life Storage and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both Life Storage and Juniper Networks 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 Life Storage and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Storage and Juniper Networks, you can compare the effects of market volatilities on Life Storage and Juniper Networks 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 Life Storage with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Storage and Juniper Networks.
Diversification Opportunities for Life Storage and Juniper Networks
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Life and Juniper is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Life Storage and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Life Storage 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 Life Storage are associated (or correlated) with Juniper Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper Networks has no effect on the direction of Life Storage i.e., Life Storage and Juniper Networks go up and down completely randomly.
Pair Corralation between Life Storage and Juniper Networks
If you would invest 3,525 in Juniper Networks on September 1, 2024 and sell it today you would earn a total of 67.00 from holding Juniper Networks or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Life Storage vs. Juniper Networks
Performance |
| Timeline |
| Life Storage |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Juniper Networks |
Life Storage and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Storage and Juniper Networks
The main advantage of trading using opposite Life Storage and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Storage position performs unexpectedly, Juniper Networks 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 Juniper Networks will offset losses from the drop in Juniper Networks' long position.| Life Storage vs. Public Storage | Life Storage vs. CubeSmart | Life Storage vs. National Storage Affiliates | Life Storage vs. Prologis |
| Juniper Networks vs. Infinera | Juniper Networks vs. Lumentum Holdings | Juniper Networks vs. Extreme Networks | Juniper Networks vs. Clearfield |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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