Correlation Between Vodafone Group and Juniper
Can any of the company-specific risk be diversified away by investing in both Vodafone Group and Juniper 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 Vodafone Group and Juniper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vodafone Group PLC and Juniper Group, you can compare the effects of market volatilities on Vodafone Group and Juniper 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 Vodafone Group with a short position of Juniper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodafone Group and Juniper.
Diversification Opportunities for Vodafone Group and Juniper
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vodafone and Juniper is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Vodafone Group PLC and Juniper Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Group and Vodafone Group 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 Vodafone Group PLC are associated (or correlated) with Juniper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper Group has no effect on the direction of Vodafone Group i.e., Vodafone Group and Juniper go up and down completely randomly.
Pair Corralation between Vodafone Group and Juniper
Considering the 90-day investment horizon Vodafone Group is expected to generate 54.85 times less return on investment than Juniper. In addition to that, Vodafone Group is 3.45 times more volatile than Juniper Group. It trades about 0.0 of its total potential returns per unit of risk. Juniper Group is currently generating about 0.15 per unit of volatility. If you would invest 2,501 in Juniper Group on September 3, 2024 and sell it today you would earn a total of 233.00 from holding Juniper Group or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 26.74% |
| Values | Daily Returns |
Vodafone Group PLC vs. Juniper Group
Performance |
| Timeline |
| Vodafone Group PLC |
| Juniper Group |
Vodafone Group and Juniper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vodafone Group and Juniper
The main advantage of trading using opposite Vodafone Group and Juniper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vodafone Group position performs unexpectedly, Juniper 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 will offset losses from the drop in Juniper's long position.| Vodafone Group vs. Highway Holdings Limited | Vodafone Group vs. QCR Holdings | Vodafone Group vs. Partner Communications | Vodafone Group vs. Acumen Pharmaceuticals |
| Juniper vs. FT Vest Equity | Juniper vs. Northern Lights | Juniper vs. Dimensional International High | Juniper 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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