Correlation Between NYSE Composite and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Juniper Networks, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Juniper Networks.
Diversification Opportunities for NYSE Composite and Juniper Networks
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Juniper is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Juniper Networks go up and down completely randomly.
Pair Corralation between NYSE Composite and Juniper Networks
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.52 times more return on investment than Juniper Networks. However, NYSE Composite is 1.91 times less risky than Juniper Networks. It trades about 0.13 of its potential returns per unit of risk. Juniper Networks is currently generating about -0.35 per unit of risk. If you would invest 1,959,424 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 37,406 from holding NYSE Composite or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Juniper Networks
Performance |
| Timeline |
NYSE Composite and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Juniper Networks
Pair trading matchups for Juniper Networks
Pair Trading with NYSE Composite and Juniper Networks
The main advantage of trading using opposite NYSE Composite and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Juniper Networks vs. Eshallgo Class A | Juniper Networks vs. Amtech Systems | Juniper Networks vs. Gold Fields Ltd | Juniper Networks vs. Aegean Airlines SA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |