Correlation Between Amedeo Air and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Amedeo Air and Juniata Valley 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 Amedeo Air and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedeo Air Four and Juniata Valley Financial, you can compare the effects of market volatilities on Amedeo Air and Juniata Valley 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 Amedeo Air with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and Juniata Valley.
Diversification Opportunities for Amedeo Air and Juniata Valley
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amedeo and Juniata is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and Juniata Valley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniata Valley Financial and Amedeo Air 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 Amedeo Air Four are associated (or correlated) with Juniata Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniata Valley Financial has no effect on the direction of Amedeo Air i.e., Amedeo Air and Juniata Valley go up and down completely randomly.
Pair Corralation between Amedeo Air and Juniata Valley
Assuming the 90 days horizon Amedeo Air Four is expected to generate 1.25 times more return on investment than Juniata Valley. However, Amedeo Air is 1.25 times more volatile than Juniata Valley Financial. It trades about 0.32 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.03 per unit of risk. If you would invest 44.00 in Amedeo Air Four on September 4, 2024 and sell it today you would earn a total of 17.00 from holding Amedeo Air Four or generate 38.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 3.84% |
| Values | Daily Returns |
Amedeo Air Four vs. Juniata Valley Financial
Performance |
| Timeline |
| Amedeo Air Four |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Juniata Valley Financial |
Amedeo Air and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and Juniata Valley
The main advantage of trading using opposite Amedeo Air and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air position performs unexpectedly, Juniata Valley 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 Juniata Valley will offset losses from the drop in Juniata Valley's long position.| Amedeo Air vs. Juniata Valley Financial | Amedeo Air vs. Pintec Technology Holdings | Amedeo Air vs. Univest Pennsylvania | Amedeo Air vs. Saia Inc |
| Juniata Valley vs. FNB Inc | Juniata Valley vs. Apollo Bancorp | Juniata Valley vs. Commercial National Financial | Juniata Valley vs. Eastern Michigan Financial |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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