Correlation Between Panther Metals and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both Panther Metals 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 Panther Metals and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Juniper Networks, you can compare the effects of market volatilities on Panther Metals 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 Panther Metals with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Juniper Networks.
Diversification Opportunities for Panther Metals and Juniper Networks
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panther and Juniper is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Panther Metals 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 Panther Metals PLC 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 Panther Metals i.e., Panther Metals and Juniper Networks go up and down completely randomly.
Pair Corralation between Panther Metals and Juniper Networks
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 44.43 times more return on investment than Juniper Networks. However, Panther Metals is 44.43 times more volatile than Juniper Networks. It trades about 0.07 of its potential returns per unit of risk. Juniper Networks is currently generating about 0.05 per unit of risk. If you would invest 8,500 in Panther Metals PLC on September 19, 2024 and sell it today you would lose (250.00) from holding Panther Metals PLC or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.22% |
| Values | Daily Returns |
Panther Metals PLC vs. Juniper Networks
Performance |
| Timeline |
| Panther Metals PLC |
| Juniper Networks |
Panther Metals and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Juniper Networks
The main advantage of trading using opposite Panther Metals and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals 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.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Ferrexpo PLC | Panther Metals vs. Atalaya Mining |
| Juniper Networks vs. Panther Metals PLC | Juniper Networks vs. Jacquet Metal Service | Juniper Networks vs. Blackrock World Mining | Juniper Networks vs. Summit Materials Cl |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |