Correlation Between IHS Holding and Juniper

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

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

Diversification Opportunities for IHS Holding and Juniper

-0.53

Correlation Coefficient

IHS Holding  Juniper

Excellent diversification

The 3 months correlation between IHS and Juniper is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and Juniper Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Group and IHS Holding 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 IHS Holding 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 IHS Holding i.e., IHS Holding and Juniper go up and down completely randomly.

Pair Corralation between IHS Holding and Juniper

Considering the 90-day investment horizon IHS Holding is expected to generate 3.4 times less return on investment than Juniper. In addition to that, IHS Holding is 6.43 times more volatile than Juniper Group. It trades about 0.01 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  2,624  in Juniper Group on August 30, 2024 and sell it today you would earn a total of  100.00  from holding Juniper Group or generate 3.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

IHS Holding  vs.  Juniper Group

IHS Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IHS Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, IHS Holding is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Juniper Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Juniper Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Juniper is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with IHS Holding and Juniper

The main advantage of trading using opposite IHS Holding and Juniper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHS Holding 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.

The idea behind IHS Holding and Juniper Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.