Correlation Between Juniata Valley and Highway Holdings
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Highway Holdings 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 Highway Holdings 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 Highway Holdings Limited, you can compare the effects of market volatilities on Juniata Valley and Highway Holdings 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 Highway Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Highway Holdings.
Diversification Opportunities for Juniata Valley and Highway Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Juniata and Highway is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Highway Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway Holdings 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 Highway Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway Holdings has no effect on the direction of Juniata Valley i.e., Juniata Valley and Highway Holdings go up and down completely randomly.
Pair Corralation between Juniata Valley and Highway Holdings
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 1.7 times more return on investment than Highway Holdings. However, Juniata Valley is 1.7 times more volatile than Highway Holdings Limited. It trades about 0.02 of its potential returns per unit of risk. Highway Holdings Limited is currently generating about 0.01 per unit of risk. If you would invest 1,415 in Juniata Valley Financial on August 27, 2024 and sell it today you would lose (165.00) from holding Juniata Valley Financial or give up 11.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 88.96% |
| Values | Daily Returns |
Juniata Valley Financial vs. Highway Holdings Limited
Performance |
| Timeline |
| Juniata Valley Financial |
| Highway Holdings |
Juniata Valley and Highway Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Highway Holdings
The main advantage of trading using opposite Juniata Valley and Highway Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Highway Holdings 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 Highway Holdings will offset losses from the drop in Highway Holdings' long position.| Juniata Valley vs. Invesco High Income | Juniata Valley vs. Blackrock Muniholdings Ny | Juniata Valley vs. MFS Investment Grade | Juniata Valley vs. Federated Premier Municipal |
| Highway Holdings vs. Deswell Industries | Highway Holdings vs. Euro Tech Holdings | Highway Holdings vs. China Natural Resources | Highway Holdings vs. Arts Way Manufacturing Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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