Correlation Between Juniata Valley and Molina Healthcare
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Molina Healthcare 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 Molina Healthcare 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 Molina Healthcare, you can compare the effects of market volatilities on Juniata Valley and Molina Healthcare 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 Molina Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Molina Healthcare.
Diversification Opportunities for Juniata Valley and Molina Healthcare
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniata and Molina is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Molina Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molina Healthcare 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 Molina Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molina Healthcare has no effect on the direction of Juniata Valley i.e., Juniata Valley and Molina Healthcare go up and down completely randomly.
Pair Corralation between Juniata Valley and Molina Healthcare
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 1.07 times more return on investment than Molina Healthcare. However, Juniata Valley is 1.07 times more volatile than Molina Healthcare. It trades about 0.02 of its potential returns per unit of risk. Molina Healthcare is currently generating about -0.01 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.94% |
| Values | Daily Returns |
Juniata Valley Financial vs. Molina Healthcare
Performance |
| Timeline |
| Juniata Valley Financial |
| Molina Healthcare |
Juniata Valley and Molina Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Molina Healthcare
The main advantage of trading using opposite Juniata Valley and Molina Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Molina Healthcare 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 Molina Healthcare will offset losses from the drop in Molina Healthcare'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 |
| Molina Healthcare vs. Cigna Corp | Molina Healthcare vs. Humana Inc | Molina Healthcare vs. Elevance Health | Molina Healthcare vs. Alignment Healthcare LLC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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