Correlation Between Juniper Networks and Microwave Filter

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

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

Diversification Opportunities for Juniper Networks and Microwave Filter

0.0

Correlation Coefficient

Juniper Networks  Microwave Filter

Pay attention - limited upside

The 3 months correlation between Juniper and Microwave is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Microwave Filter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microwave Filter 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 Microwave Filter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microwave Filter has no effect on the direction of Juniper Networks i.e., Juniper Networks and Microwave Filter go up and down completely randomly.

Pair Corralation between Juniper Networks and Microwave Filter

If you would invest (100.00) in Microwave Filter on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Microwave Filter 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

Juniper Networks  vs.  Microwave Filter

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.

Microwave Filter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Microwave Filter has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Microwave Filter is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Juniper Networks and Microwave Filter

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

The idea behind Juniper Networks and Microwave Filter 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.