Correlation Between Highway Holdings and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Highway Holdings 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 Highway Holdings and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highway Holdings Limited and Juniata Valley Financial, you can compare the effects of market volatilities on Highway Holdings 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 Highway Holdings with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway Holdings and Juniata Valley.
Diversification Opportunities for Highway Holdings and Juniata Valley
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Highway and Juniata is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Highway Holdings Limited 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 Highway Holdings 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 Highway Holdings Limited 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 Highway Holdings i.e., Highway Holdings and Juniata Valley go up and down completely randomly.
Pair Corralation between Highway Holdings and Juniata Valley
Given the investment horizon of 90 days Highway Holdings is expected to generate 10.07 times less return on investment than Juniata Valley. But when comparing it to its historical volatility, Highway Holdings Limited is 2.31 times less risky than Juniata Valley. It trades about 0.03 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,205 in Juniata Valley Financial on August 31, 2024 and sell it today you would earn a total of 70.00 from holding Juniata Valley Financial or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highway Holdings Limited vs. Juniata Valley Financial
Performance |
| Timeline |
| Highway Holdings |
| Juniata Valley Financial |
Highway Holdings and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway Holdings and Juniata Valley
The main advantage of trading using opposite Highway Holdings and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway Holdings 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.| Highway Holdings vs. Deswell Industries | Highway Holdings vs. Euro Tech Holdings | Highway Holdings vs. China Natural Resources | Highway Holdings vs. Arts Way Manufacturing Co |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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