Correlation Between International Business and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Juniata Valley Financial, you can compare the effects of market volatilities on International Business 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 International Business with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Juniata Valley.
Diversification Opportunities for International Business and Juniata Valley
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Juniata is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine 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 International Business 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 International Business Machines 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 International Business i.e., International Business and Juniata Valley go up and down completely randomly.
Pair Corralation between International Business and Juniata Valley
Considering the 90-day investment horizon International Business Machines is expected to generate 0.73 times more return on investment than Juniata Valley. However, International Business Machines is 1.36 times less risky than Juniata Valley. It trades about 0.26 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.18 per unit of risk. If you would invest 20,879 in International Business Machines on August 30, 2024 and sell it today you would earn a total of 1,813 from holding International Business Machines or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Juniata Valley Financial
Performance |
| Timeline |
| International Business |
| Juniata Valley Financial |
International Business and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Juniata Valley
The main advantage of trading using opposite International Business and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. The Hackett Group | International Business vs. Nayax | International Business vs. Formula Systems 1985 | International Business vs. Information Services Group |
| Juniata Valley vs. Invesco High Income | Juniata Valley vs. Blackrock Muniholdings Ny | Juniata Valley vs. Nuveen California Select | Juniata Valley vs. MFS Investment Grade |
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.
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