Correlation Between Juniper Networks and AstroNova

Can any of the company-specific risk be diversified away by investing in both Juniper Networks and AstroNova 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 Juniper Networks and AstroNova into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Juniper Networks and AstroNova, you can compare the effects of market volatilities on Juniper Networks and AstroNova 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 Juniper Networks with a short position of AstroNova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and AstroNova.

Diversification Opportunities for Juniper Networks and AstroNova

0.48

Correlation Coefficient

Juniper Networks  AstroNova

Very weak diversification

The 3 months correlation between Juniper and AstroNova is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and AstroNova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AstroNova and Juniper Networks 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 Juniper Networks are associated (or correlated) with AstroNova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AstroNova has no effect on the direction of Juniper Networks i.e., Juniper Networks and AstroNova go up and down completely randomly.

Pair Corralation between Juniper Networks and AstroNova

Given the investment horizon of 90 days Juniper Networks is expected to generate 0.37 times more return on investment than AstroNova. However, Juniper Networks is 2.69 times less risky than AstroNova. It trades about -0.03 of its potential returns per unit of risk. AstroNova is currently generating about -0.16 per unit of risk. If you would invest  3,712  in Juniper Networks on December 30, 2024 and sell it today you would lose (100.00) from holding Juniper Networks or give up 2.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Juniper Networks  vs.  AstroNova

Juniper Networks

Risk-Adjusted Performance

Very Weak

Over the last 90 days Juniper Networks has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Juniper Networks is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

AstroNova

Risk-Adjusted Performance

Very Weak

Over the last 90 days AstroNova has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Juniper Networks and AstroNova

The main advantage of trading using opposite Juniper Networks and AstroNova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, AstroNova 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 AstroNova will offset losses from the drop in AstroNova's long position.

The idea behind Juniper Networks and AstroNova pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.