Correlation Between Juniper Networks and IShares ESG

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

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

Diversification Opportunities for Juniper Networks and IShares ESG

-0.55

Correlation Coefficient

Juniper Networks  IShares ESG

Excellent diversification

The 3 months correlation between Juniper and IShares is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and iShares ESG Aware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aware 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 IShares ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aware has no effect on the direction of Juniper Networks i.e., Juniper Networks and IShares ESG go up and down completely randomly.

Pair Corralation between Juniper Networks and IShares ESG

Given the investment horizon of 90 days Juniper Networks is expected to generate 0.07 times more return on investment than IShares ESG. However, Juniper Networks is 13.63 times less risky than IShares ESG. It trades about -0.04 of its potential returns per unit of risk. iShares ESG Aware is currently generating about -0.12 per unit of risk. If you would invest  3,831  in Juniper Networks on September 12, 2024 and sell it today you would lose (108.00) from holding Juniper Networks or give up 2.82% of portfolio value over 90 days.

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

Juniper Networks  vs.  iShares ESG Aware

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 current stock price agitation, may contribute to short-term losses for the retail investors.

iShares ESG Aware

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Juniper Networks and IShares ESG

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

The idea behind Juniper Networks and iShares ESG Aware 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.