Correlation Between Juniper Networks and Hewlett Packard

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and Hewlett Packard 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 Hewlett Packard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and Hewlett Packard Enterprise, you can compare the effects of market volatilities on Juniper Networks and Hewlett Packard 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 Hewlett Packard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and Hewlett Packard.

Diversification Opportunities for Juniper Networks and Hewlett Packard

-0.36
  Correlation Coefficient

Very good diversification

The 3 months correlation between Juniper and Hewlett is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Hewlett Packard Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hewlett Packard Ente 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 Hewlett Packard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hewlett Packard Ente has no effect on the direction of Juniper Networks i.e., Juniper Networks and Hewlett Packard go up and down completely randomly.

Pair Corralation between Juniper Networks and Hewlett Packard

Given the investment horizon of 90 days Juniper Networks is expected to under-perform the Hewlett Packard. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Networks is 3.07 times less risky than Hewlett Packard. The stock trades about -0.14 of its potential returns per unit of risk. The Hewlett Packard Enterprise is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,923  in Hewlett Packard Enterprise on August 30, 2024 and sell it today you would earn a total of  157.00  from holding Hewlett Packard Enterprise or generate 8.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Juniper Networks  vs.  Hewlett Packard Enterprise

 Performance 
       Timeline  
Juniper Networks 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 latest unfluctuating performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
Hewlett Packard Ente 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Hewlett Packard Enterprise are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Hewlett Packard may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Juniper Networks and Hewlett Packard Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Juniper Networks and Hewlett Packard

The main advantage of trading using opposite Juniper Networks and Hewlett Packard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Hewlett Packard 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 Hewlett Packard will offset losses from the drop in Hewlett Packard's long position.
The idea behind Juniper Networks and Hewlett Packard Enterprise 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios