Correlation Between Juniata Valley and MBT Bancshares
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and MBT Bancshares 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 MBT Bancshares 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 MBT Bancshares, you can compare the effects of market volatilities on Juniata Valley and MBT Bancshares 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 MBT Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and MBT Bancshares.
Diversification Opportunities for Juniata Valley and MBT Bancshares
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Juniata and MBT is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and MBT Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBT Bancshares 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 MBT Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBT Bancshares has no effect on the direction of Juniata Valley i.e., Juniata Valley and MBT Bancshares go up and down completely randomly.
Pair Corralation between Juniata Valley and MBT Bancshares
If you would invest 1,264 in Juniata Valley Financial on November 9, 2024 and sell it today you would earn a total of 11.00 from holding Juniata Valley Financial or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 10.0% |
| Values | Daily Returns |
Juniata Valley Financial vs. MBT Bancshares
Performance |
| Timeline |
| Juniata Valley Financial |
| MBT Bancshares |
Risk-Adjusted Performance
Very Strong
Weak | Strong |
Juniata Valley and MBT Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and MBT Bancshares
The main advantage of trading using opposite Juniata Valley and MBT Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, MBT Bancshares 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 MBT Bancshares will offset losses from the drop in MBT Bancshares' long position.| Juniata Valley vs. CCSB Financial Corp | Juniata Valley vs. North Dallas Bank | Juniata Valley vs. Delhi Bank Corp | Juniata Valley vs. Bank of Utica |
| MBT Bancshares vs. Huntington Bancshares Incorporated | MBT Bancshares vs. KeyCorp | MBT Bancshares vs. Bank of Idaho | MBT Bancshares vs. Citizens Financial Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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