Correlation Between Juniata Valley and Mauch Chunk
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Mauch Chunk 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 Mauch Chunk 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 Mauch Chunk Trust, you can compare the effects of market volatilities on Juniata Valley and Mauch Chunk 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 Mauch Chunk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Mauch Chunk.
Diversification Opportunities for Juniata Valley and Mauch Chunk
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Juniata and Mauch is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Mauch Chunk Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mauch Chunk Trust 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 Mauch Chunk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mauch Chunk Trust has no effect on the direction of Juniata Valley i.e., Juniata Valley and Mauch Chunk go up and down completely randomly.
Pair Corralation between Juniata Valley and Mauch Chunk
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 1.18 times more return on investment than Mauch Chunk. However, Juniata Valley is 1.18 times more volatile than Mauch Chunk Trust. It trades about 0.08 of its potential returns per unit of risk. Mauch Chunk Trust is currently generating about 0.01 per unit of risk. If you would invest 1,175 in Juniata Valley Financial on August 25, 2024 and sell it today you would earn a total of 75.00 from holding Juniata Valley Financial or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
Juniata Valley Financial vs. Mauch Chunk Trust
Performance |
| Timeline |
| Juniata Valley Financial |
| Mauch Chunk Trust |
Juniata Valley and Mauch Chunk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Mauch Chunk
The main advantage of trading using opposite Juniata Valley and Mauch Chunk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Mauch Chunk 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 Mauch Chunk will offset losses from the drop in Mauch Chunk'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 |
| Mauch Chunk vs. Western Alliance Bancorporation | Mauch Chunk vs. Zions Bancorporation | Mauch Chunk vs. KeyCorp | Mauch Chunk vs. First Horizon National |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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