Correlation Between Farmers Merchants and Juniper II
Can any of the company-specific risk be diversified away by investing in both Farmers Merchants and Juniper II 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 Farmers Merchants and Juniper II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmers Merchants Bancorp and Juniper II Corp, you can compare the effects of market volatilities on Farmers Merchants and Juniper II 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 Farmers Merchants with a short position of Juniper II. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmers Merchants and Juniper II.
Diversification Opportunities for Farmers Merchants and Juniper II
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Farmers and Juniper is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Farmers Merchants Bancorp and Juniper II Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniper II Corp and Farmers Merchants 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 Farmers Merchants Bancorp are associated (or correlated) with Juniper II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniper II Corp has no effect on the direction of Farmers Merchants i.e., Farmers Merchants and Juniper II go up and down completely randomly.
Pair Corralation between Farmers Merchants and Juniper II
If you would invest 93,518 in Farmers Merchants Bancorp on November 5, 2024 and sell it today you would earn a total of 10,482 from holding Farmers Merchants Bancorp or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Farmers Merchants Bancorp vs. Juniper II Corp
Performance |
| Timeline |
| Farmers Merchants Bancorp |
| Juniper II Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Farmers Merchants and Juniper II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmers Merchants and Juniper II
The main advantage of trading using opposite Farmers Merchants and Juniper II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmers Merchants position performs unexpectedly, Juniper II 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 Juniper II will offset losses from the drop in Juniper II's long position.| Farmers Merchants vs. PSB Holdings | Farmers Merchants vs. Eagle Financial Services | Farmers Merchants vs. National Capital Bank | Farmers Merchants vs. Community Heritage 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |