Correlation Between Apollo Bancorp and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp 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 Apollo Bancorp and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Bancorp and Juniata Valley Financial, you can compare the effects of market volatilities on Apollo Bancorp 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 Apollo Bancorp with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and Juniata Valley.
Diversification Opportunities for Apollo Bancorp and Juniata Valley
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apollo and Juniata is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp 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 Apollo Bancorp 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 Apollo Bancorp 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 Apollo Bancorp i.e., Apollo Bancorp and Juniata Valley go up and down completely randomly.
Pair Corralation between Apollo Bancorp and Juniata Valley
Given the investment horizon of 90 days Apollo Bancorp is expected to generate 6.16 times less return on investment than Juniata Valley. But when comparing it to its historical volatility, Apollo Bancorp is 1.25 times less risky than Juniata Valley. It trades about 0.0 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,332 in Juniata Valley Financial on October 19, 2024 and sell it today you would lose (52.00) from holding Juniata Valley Financial or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.23% |
| Values | Daily Returns |
Apollo Bancorp vs. Juniata Valley Financial
Performance |
| Timeline |
| Apollo Bancorp |
| Juniata Valley Financial |
Apollo Bancorp and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Bancorp and Juniata Valley
The main advantage of trading using opposite Apollo Bancorp and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp 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.| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial Corp |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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