Correlation Between Bank of Utica and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Bank of Utica 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 Bank of Utica and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Utica and Juniata Valley Financial, you can compare the effects of market volatilities on Bank of Utica 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 Bank of Utica with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Utica and Juniata Valley.
Diversification Opportunities for Bank of Utica and Juniata Valley
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Juniata is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Utica 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 Bank of Utica 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 Bank of Utica 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 Bank of Utica i.e., Bank of Utica and Juniata Valley go up and down completely randomly.
Pair Corralation between Bank of Utica and Juniata Valley
Given the investment horizon of 90 days Bank of Utica is expected to generate 2.04 times less return on investment than Juniata Valley. But when comparing it to its historical volatility, Bank of Utica is 1.82 times less risky than Juniata Valley. It trades about 0.35 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Juniata Valley Financial on September 3, 2024 and sell it today you would earn a total of 195.00 from holding Juniata Valley Financial or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bank of Utica vs. Juniata Valley Financial
Performance |
| Timeline |
| Bank of Utica |
| Juniata Valley Financial |
Bank of Utica and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Utica and Juniata Valley
The main advantage of trading using opposite Bank of Utica and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Utica 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.| Bank of Utica vs. CCSB Financial Corp | Bank of Utica vs. First Community Financial | Bank of Utica vs. BEO Bancorp | Bank of Utica vs. First Community |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets |