Correlation Between Citigroup and Juggernaut Exploration
Can any of the company-specific risk be diversified away by investing in both Citigroup and Juggernaut Exploration 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 Juggernaut Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Juggernaut Exploration, you can compare the effects of market volatilities on Citigroup and Juggernaut Exploration 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 Juggernaut Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Juggernaut Exploration.
Diversification Opportunities for Citigroup and Juggernaut Exploration
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Juggernaut is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Juggernaut Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juggernaut Exploration 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 Juggernaut Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juggernaut Exploration has no effect on the direction of Citigroup i.e., Citigroup and Juggernaut Exploration go up and down completely randomly.
Pair Corralation between Citigroup and Juggernaut Exploration
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Juggernaut Exploration. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 6.71 times less risky than Juggernaut Exploration. The stock trades about -0.02 of its potential returns per unit of risk. The Juggernaut Exploration is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Juggernaut Exploration on November 27, 2024 and sell it today you would earn a total of 0.29 from holding Juggernaut Exploration or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Juggernaut Exploration
Performance |
| Timeline |
| Citigroup |
| Juggernaut Exploration |
Citigroup and Juggernaut Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Juggernaut Exploration
The main advantage of trading using opposite Citigroup and Juggernaut Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Juggernaut Exploration 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 Juggernaut Exploration will offset losses from the drop in Juggernaut Exploration's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Juggernaut Exploration vs. BCM Resources | Juggernaut Exploration vs. Eskay Mining Corp | Juggernaut Exploration vs. Nevada King Gold | Juggernaut Exploration vs. Skeena Resources |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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