Correlation Between Juniper Networks and Intel

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

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

Diversification Opportunities for Juniper Networks and Intel

0.0

Correlation Coefficient

Juniper Networks  Intel

Pay attention - limited upside

The 3 months correlation between Juniper and Intel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Juniper Networks i.e., Juniper Networks and Intel go up and down completely randomly.

Pair Corralation between Juniper Networks and Intel

Given the investment horizon of 90 days Juniper Networks is expected to generate 0.47 times more return on investment than Intel. However, Juniper Networks is 2.11 times less risky than Intel. It trades about 0.18 of its potential returns per unit of risk. Intel is currently generating about 0.02 per unit of risk. If you would invest  3,613  in Juniper Networks on May 1, 2025 and sell it today you would earn a total of  382.00  from holding Juniper Networks or generate 10.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	69.35%
Values	Daily Returns

Juniper Networks  vs.  Intel

Juniper Networks

Risk-Adjusted Performance

Good

Over the last 90 days Juniper Networks has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively unfluctuating basic indicators, Juniper Networks reported solid returns over the last few months and may actually be approaching a breakup point.

Intel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Intel is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Juniper Networks and Intel

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

The idea behind Juniper Networks and Intel 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.