Correlation Between XLMedia PLC and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC 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 XLMedia PLC and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and Juniper Networks, you can compare the effects of market volatilities on XLMedia PLC 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 XLMedia PLC with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and Juniper Networks.
Diversification Opportunities for XLMedia PLC and Juniper Networks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between XLMedia and Juniper is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and XLMedia PLC 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 XLMedia 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 XLMedia PLC i.e., XLMedia PLC and Juniper Networks go up and down completely randomly.
Pair Corralation between XLMedia PLC and Juniper Networks
If you would invest (100.00) in Juniper Networks on September 23, 2024 and sell it today you would earn a total of 100.00 from holding Juniper Networks or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
XLMedia PLC vs. Juniper Networks
Performance |
| Timeline |
| XLMedia PLC |
| Juniper Networks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
XLMedia PLC and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and Juniper Networks
The main advantage of trading using opposite XLMedia PLC and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC 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.| XLMedia PLC vs. Everyman Media Group | XLMedia PLC vs. Spirent Communications plc | XLMedia PLC vs. G5 Entertainment AB | XLMedia PLC vs. Universal Display Corp |
| Juniper Networks vs. Zinc Media Group | Juniper Networks vs. Kinnevik Investment AB | Juniper Networks vs. Live Nation Entertainment | Juniper Networks vs. Lowland Investment Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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