Correlation Between Juniper Networks and Meta Platforms

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

Diversification Opportunities for Juniper Networks and Meta Platforms

-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Juniper and Meta is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Juniper Networks i.e., Juniper Networks and Meta Platforms go up and down completely randomly.

Pair Corralation between Juniper Networks and Meta Platforms

If you would invest  3,694  in Juniper Networks on December 29, 2023 and sell it today you would earn a total of  34.00  from holding Juniper Networks or generate 0.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy4.55%
ValuesDaily Returns

Juniper Networks  vs.  Meta Platforms

 Performance 
       Timeline  
Juniper Networks 

Risk-Adjusted Performance

11 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Juniper Networks are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Juniper Networks reported solid returns over the last few months and may actually be approaching a breakup point.
Meta Platforms 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Meta Platforms has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Meta Platforms is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Juniper Networks and Meta Platforms Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Juniper Networks and Meta Platforms

The main advantage of trading using opposite Juniper Networks and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.
The idea behind Juniper Networks and Meta Platforms 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Global Correlations
Find global opportunities by holding instruments from different markets
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Bonds Directory
Find actively traded corporate debentures issued by US companies
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Share Portfolio
Track or share privately all of your investments from the convenience of any device