Correlation Between State Auto and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both State Auto and Juniper Networks 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 State Auto and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Auto Financial and Juniper Networks, you can compare the effects of market volatilities on State Auto and Juniper Networks 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 State Auto with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Auto and Juniper Networks.
Diversification Opportunities for State Auto and Juniper Networks
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Juniper is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding State Auto Financial and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and State Auto 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 State Auto Financial are associated (or correlated) with Juniper Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper Networks has no effect on the direction of State Auto i.e., State Auto and Juniper Networks go up and down completely randomly.
Pair Corralation between State Auto and Juniper Networks
If you would invest 3,111 in Juniper Networks on January 24, 2024 and sell it today you would earn a total of 500.00 from holding Juniper Networks or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
State Auto Financial vs. Juniper Networks
Performance |
| Timeline |
| State Auto Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Juniper Networks |
State Auto and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Auto and Juniper Networks
The main advantage of trading using opposite State Auto and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Auto position performs unexpectedly, Juniper Networks 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 Networks will offset losses from the drop in Juniper Networks' long position.| State Auto vs. NanoTech Gaming | State Auto vs. Daily Journal Corp | State Auto vs. Dow Jones Toys | State Auto vs. Acco Brands |
| Juniper Networks vs. Desktop Metal | Juniper Networks vs. Fabrinet | Juniper Networks vs. Kimball Electronics | Juniper Networks vs. Knowles Cor |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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