Correlation Between Juniper Networks and Eshallgo

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

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

Diversification Opportunities for Juniper Networks and Eshallgo

-0.72

Correlation Coefficient

Juniper Networks  Eshallgo

Pay attention - limited upside

The 3 months correlation between Juniper and Eshallgo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A 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 Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Juniper Networks i.e., Juniper Networks and Eshallgo go up and down completely randomly.

Pair Corralation between Juniper Networks and Eshallgo

Given the investment horizon of 90 days Juniper Networks is expected to under-perform the Eshallgo. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Networks is 7.67 times less risky than Eshallgo. The stock trades about -0.04 of its potential returns per unit of risk. The Eshallgo Class A is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  217.00  in Eshallgo Class A on September 13, 2024 and sell it today you would earn a total of  199.00  from holding Eshallgo Class A or generate 91.71% return on investment over 90 days.

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

Juniper Networks  vs.  Eshallgo Class A

Juniper Networks

Risk-Adjusted Performance

0 of 100

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.

Eshallgo Class A

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eshallgo Class A are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Eshallgo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Juniper Networks and Eshallgo

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

The idea behind Juniper Networks and Eshallgo Class A 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.