Correlation Between Juniper Networks and 6 Meridian

Can any of the company-specific risk be diversified away by investing in both Juniper Networks and 6 Meridian 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 6 Meridian into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Juniper Networks and 6 Meridian Mega, you can compare the effects of market volatilities on Juniper Networks and 6 Meridian 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 6 Meridian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and 6 Meridian.

Diversification Opportunities for Juniper Networks and 6 Meridian

-0.44

Correlation Coefficient

Juniper Networks  6 Meridian

Very good diversification

The 3 months correlation between Juniper and SIXA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and 6 Meridian Mega in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 6 Meridian Mega 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 6 Meridian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 6 Meridian Mega has no effect on the direction of Juniper Networks i.e., Juniper Networks and 6 Meridian go up and down completely randomly.

Pair Corralation between Juniper Networks and 6 Meridian

Given the investment horizon of 90 days Juniper Networks is expected to under-perform the 6 Meridian. In addition to that, Juniper Networks is 1.49 times more volatile than 6 Meridian Mega. It trades about -0.15 of its total potential returns per unit of risk. 6 Meridian Mega is currently generating about 0.17 per unit of volatility. If you would invest  4,372  in 6 Meridian Mega on September 5, 2024 and sell it today you would earn a total of  267.00  from holding 6 Meridian Mega or generate 6.11% return on investment over 90 days.

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

Juniper Networks  vs.  6 Meridian Mega

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 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.

6 Meridian Mega

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in 6 Meridian Mega are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 6 Meridian is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Juniper Networks and 6 Meridian

The main advantage of trading using opposite Juniper Networks and 6 Meridian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, 6 Meridian 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 6 Meridian will offset losses from the drop in 6 Meridian's long position.

The idea behind Juniper Networks and 6 Meridian Mega 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 Global Correlations module to find global opportunities by holding instruments from different markets.