Correlation Between Juniata Valley and First Community
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and First Community 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 First Community 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 First Community Financial, you can compare the effects of market volatilities on Juniata Valley and First Community 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 First Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and First Community.
Diversification Opportunities for Juniata Valley and First Community
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniata and First is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and First Community Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Community Financial 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 First Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Community Financial has no effect on the direction of Juniata Valley i.e., Juniata Valley and First Community go up and down completely randomly.
Pair Corralation between Juniata Valley and First Community
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 0.78 times more return on investment than First Community. However, Juniata Valley Financial is 1.28 times less risky than First Community. It trades about 0.25 of its potential returns per unit of risk. First Community Financial is currently generating about -0.15 per unit of risk. If you would invest 1,205 in Juniata Valley Financial on September 2, 2024 and sell it today you would earn a total of 145.00 from holding Juniata Valley Financial or generate 12.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniata Valley Financial vs. First Community Financial
Performance |
| Timeline |
| Juniata Valley Financial |
| First Community Financial |
Juniata Valley and First Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and First Community
The main advantage of trading using opposite Juniata Valley and First Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, First Community 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 First Community will offset losses from the drop in First Community'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 |
| First Community vs. CCSB Financial Corp | First Community vs. Bank of Utica | First Community vs. BEO Bancorp | First Community vs. First Community |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |