Correlation Between Juniata Valley and China Tontine
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and China Tontine 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 China Tontine 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 China Tontine Wines, you can compare the effects of market volatilities on Juniata Valley and China Tontine 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 China Tontine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and China Tontine.
Diversification Opportunities for Juniata Valley and China Tontine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Juniata and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and China Tontine Wines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Tontine Wines 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 China Tontine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Tontine Wines has no effect on the direction of Juniata Valley i.e., Juniata Valley and China Tontine go up and down completely randomly.
Pair Corralation between Juniata Valley and China Tontine
Given the investment horizon of 90 days Juniata Valley is expected to generate 263.05 times less return on investment than China Tontine. But when comparing it to its historical volatility, Juniata Valley Financial is 23.21 times less risky than China Tontine. It trades about 0.01 of its potential returns per unit of risk. China Tontine Wines is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3.40 in China Tontine Wines on August 31, 2024 and sell it today you would earn a total of 3.70 from holding China Tontine Wines or generate 108.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 87.26% |
| Values | Daily Returns |
Juniata Valley Financial vs. China Tontine Wines
Performance |
| Timeline |
| Juniata Valley Financial |
| China Tontine Wines |
Juniata Valley and China Tontine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and China Tontine
The main advantage of trading using opposite Juniata Valley and China Tontine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, China Tontine 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 China Tontine will offset losses from the drop in China Tontine'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 |
| China Tontine vs. Diageo PLC ADR | China Tontine vs. Pernod Ricard SA | China Tontine vs. Constellation Brands Class | China Tontine vs. Brown Forman |
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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