Correlation Between Juniata Valley and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Apollo Bancorp 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 Juniata Valley and Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Juniata Valley Financial and Apollo Bancorp, you can compare the effects of market volatilities on Juniata Valley and Apollo Bancorp 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 Juniata Valley with a short position of Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Apollo Bancorp.
Diversification Opportunities for Juniata Valley and Apollo Bancorp
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Juniata and Apollo is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and Juniata Valley 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 Juniata Valley Financial are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Juniata Valley i.e., Juniata Valley and Apollo Bancorp go up and down completely randomly.
Pair Corralation between Juniata Valley and Apollo Bancorp
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 5.65 times more return on investment than Apollo Bancorp. However, Juniata Valley is 5.65 times more volatile than Apollo Bancorp. It trades about 0.39 of its potential returns per unit of risk. Apollo Bancorp is currently generating about 0.33 per unit of risk. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniata Valley Financial vs. Apollo Bancorp
Performance |
| Timeline |
| Juniata Valley Financial |
| Apollo Bancorp |
Juniata Valley and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Apollo Bancorp
The main advantage of trading using opposite Juniata Valley and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Apollo Bancorp 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp's long position.| Juniata Valley vs. FNB Inc | Juniata Valley vs. Apollo Bancorp | Juniata Valley vs. Commercial National Financial | Juniata Valley vs. Eastern Michigan Financial |
| Apollo Bancorp vs. First Hawaiian | Apollo Bancorp vs. Central Pacific Financial | Apollo Bancorp vs. Territorial Bancorp | Apollo Bancorp vs. Comerica |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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