Correlation Between Juniata Valley and Energy Transfer
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Energy Transfer 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 Energy Transfer 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 Energy Transfer LP, you can compare the effects of market volatilities on Juniata Valley and Energy Transfer 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 Energy Transfer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Energy Transfer.
Diversification Opportunities for Juniata Valley and Energy Transfer
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Juniata and Energy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Energy Transfer LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Transfer LP 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 Energy Transfer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Transfer LP has no effect on the direction of Juniata Valley i.e., Juniata Valley and Energy Transfer go up and down completely randomly.
Pair Corralation between Juniata Valley and Energy Transfer
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 3.8 times more return on investment than Energy Transfer. However, Juniata Valley is 3.8 times more volatile than Energy Transfer LP. It trades about 0.02 of its potential returns per unit of risk. Energy Transfer LP is currently generating about 0.07 per unit of risk. If you would invest 1,126 in Juniata Valley Financial on November 3, 2024 and sell it today you would earn a total of 80.00 from holding Juniata Valley Financial or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.94% |
| Values | Daily Returns |
Juniata Valley Financial vs. Energy Transfer LP
Performance |
| Timeline |
| Juniata Valley Financial |
| Energy Transfer LP |
Juniata Valley and Energy Transfer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Energy Transfer
The main advantage of trading using opposite Juniata Valley and Energy Transfer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Energy Transfer 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 Energy Transfer will offset losses from the drop in Energy Transfer'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 |
| Energy Transfer vs. Capri Holdings | Energy Transfer vs. Canada Goose Holdings | Energy Transfer vs. Rocky Brands | Energy Transfer vs. Skechers USA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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