Correlation Between Citigroup and Juniper Networks
Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and Juniper Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Juniper Networks, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Juniper Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Juniper Networks.
Diversification Opportunities for Citigroup and Juniper Networks
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Juniper is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Juniper Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper Networks and Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and Juniper Networks go up and down completely randomly.
Pair Corralation between Citigroup and Juniper Networks
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Juniper Networks. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.03 times less risky than Juniper Networks. The stock trades about -0.04 of its potential returns per unit of risk. The Juniper Networks is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,568 in Juniper Networks on September 19, 2024 and sell it today you would earn a total of 206.00 from holding Juniper Networks or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Juniper Networks
Performance |
| Timeline |
| Citigroup |
| Juniper Networks |
Citigroup and Juniper Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Juniper Networks
The main advantage of trading using opposite Citigroup and Juniper Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Juniper Networks vs. Panther Metals PLC | Juniper Networks vs. Jacquet Metal Service | Juniper Networks vs. Blackrock World Mining | Juniper Networks vs. Summit Materials Cl |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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