Correlation Between Juniata Valley and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Barings BDC 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 Barings BDC 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 Barings BDC, you can compare the effects of market volatilities on Juniata Valley and Barings BDC 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 Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Barings BDC.
Diversification Opportunities for Juniata Valley and Barings BDC
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Juniata and Barings is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC 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 Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Juniata Valley i.e., Juniata Valley and Barings BDC go up and down completely randomly.
Pair Corralation between Juniata Valley and Barings BDC
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 4.57 times more return on investment than Barings BDC. However, Juniata Valley is 4.57 times more volatile than Barings BDC. It trades about 0.02 of its potential returns per unit of risk. Barings BDC is currently generating about 0.06 per unit of risk. If you would invest 1,441 in Juniata Valley Financial on August 26, 2024 and sell it today you would lose (191.00) from holding Juniata Valley Financial or give up 13.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.34% |
| Values | Daily Returns |
Juniata Valley Financial vs. Barings BDC
Performance |
| Timeline |
| Juniata Valley Financial |
| Barings BDC |
Juniata Valley and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Barings BDC
The main advantage of trading using opposite Juniata Valley and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC'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 |
| Barings BDC vs. PowerUp Acquisition Corp | Barings BDC vs. Aurora Innovation | Barings BDC vs. HUMANA INC | Barings BDC vs. Aquagold International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |