Correlation Between Juniper Networks and CPI Card
Can any of the company-specific risk be diversified away by investing in both Juniper Networks and CPI Card 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 CPI Card into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniper Networks and CPI Card Group, you can compare the effects of market volatilities on Juniper Networks and CPI Card 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 CPI Card. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniper Networks and CPI Card.
Diversification Opportunities for Juniper Networks and CPI Card
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniper and CPI is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Juniper Networks and CPI Card Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Card Group 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 CPI Card. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPI Card Group has no effect on the direction of Juniper Networks i.e., Juniper Networks and CPI Card go up and down completely randomly.
Pair Corralation between Juniper Networks and CPI Card
Given the investment horizon of 90 days Juniper Networks is expected to under-perform the CPI Card. But the stock apears to be less risky and, when comparing its historical volatility, Juniper Networks is 2.75 times less risky than CPI Card. The stock trades about -0.29 of its potential returns per unit of risk. The CPI Card Group is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,380 in CPI Card Group on August 27, 2024 and sell it today you would earn a total of 595.00 from holding CPI Card Group or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniper Networks vs. CPI Card Group
Performance |
| Timeline |
| Juniper Networks |
| CPI Card Group |
Juniper Networks and CPI Card Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniper Networks and CPI Card
The main advantage of trading using opposite Juniper Networks and CPI Card positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniper Networks position performs unexpectedly, CPI Card 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 CPI Card will offset losses from the drop in CPI Card's long position.| Juniper Networks vs. Ichor Holdings | Juniper Networks vs. Fabrinet | Juniper Networks vs. Hello Group | Juniper Networks vs. Ultra Clean Holdings |
| CPI Card vs. FirstCash | CPI Card vs. Runway Growth Finance | CPI Card vs. Credit Acceptance | CPI Card vs. SLM Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |