Correlation Between Juniper Networks and PerkinElmer

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

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

Diversification Opportunities for Juniper Networks and PerkinElmer

0.45

Correlation Coefficient

Juniper Networks  PerkinElmer

Very weak diversification

The 3 months correlation between Juniper and PerkinElmer is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and PerkinElmer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PerkinElmer 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 PerkinElmer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PerkinElmer has no effect on the direction of Juniper Networks i.e., Juniper Networks and PerkinElmer go up and down completely randomly.

Pair Corralation between Juniper Networks and PerkinElmer

If you would invest  11,524  in PerkinElmer on January 20, 2024 and sell it today you would earn a total of  0.00  from holding PerkinElmer or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	2.33%
Values	Daily Returns

Juniper Networks  vs.  PerkinElmer

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

PerkinElmer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PerkinElmer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward-looking signals, PerkinElmer is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Juniper Networks and PerkinElmer

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

The idea behind Juniper Networks and PerkinElmer 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.