Correlation Between Barings BDC and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Barings BDC 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 Barings BDC and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings BDC and Juniata Valley Financial, you can compare the effects of market volatilities on Barings BDC 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 Barings BDC with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings BDC and Juniata Valley.
Diversification Opportunities for Barings BDC and Juniata Valley
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Barings and Juniata is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Barings BDC 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 Barings BDC 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 Barings BDC 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 Barings BDC i.e., Barings BDC and Juniata Valley go up and down completely randomly.
Pair Corralation between Barings BDC and Juniata Valley
Given the investment horizon of 90 days Barings BDC is expected to generate 1.55 times less return on investment than Juniata Valley. But when comparing it to its historical volatility, Barings BDC is 4.57 times less risky than Juniata Valley. It trades about 0.06 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 1,441 in Juniata Valley Financial on August 26, 2024 and sell it today you would lose (191.00) from holding Juniata Valley Financial or give up 13.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.34% |
| Values | Daily Returns |
Barings BDC vs. Juniata Valley Financial
Performance |
| Timeline |
| Barings BDC |
| Juniata Valley Financial |
Barings BDC and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings BDC and Juniata Valley
The main advantage of trading using opposite Barings BDC and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings BDC 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.| Barings BDC vs. PowerUp Acquisition Corp | Barings BDC vs. Aurora Innovation | Barings BDC vs. HUMANA INC | Barings BDC vs. Aquagold International |
| 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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