Correlation Between Juniata Valley and Muncy Bank
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Muncy Bank 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 Muncy Bank 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 Muncy Bank Financial, you can compare the effects of market volatilities on Juniata Valley and Muncy Bank 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 Muncy Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Muncy Bank.
Diversification Opportunities for Juniata Valley and Muncy Bank
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Juniata and Muncy is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Muncy Bank Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muncy Bank 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 Muncy Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muncy Bank Financial has no effect on the direction of Juniata Valley i.e., Juniata Valley and Muncy Bank go up and down completely randomly.
Pair Corralation between Juniata Valley and Muncy Bank
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 2.39 times more return on investment than Muncy Bank. However, Juniata Valley is 2.39 times more volatile than Muncy Bank Financial. It trades about 0.02 of its potential returns per unit of risk. Muncy Bank Financial is currently generating about -0.02 per unit of risk. If you would invest 1,441 in Juniata Valley Financial on August 25, 2024 and sell it today you would lose (191.00) from holding Juniata Valley Financial or give up 13.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 35.81% |
| Values | Daily Returns |
Juniata Valley Financial vs. Muncy Bank Financial
Performance |
| Timeline |
| Juniata Valley Financial |
| Muncy Bank Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Juniata Valley and Muncy Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Muncy Bank
The main advantage of trading using opposite Juniata Valley and Muncy Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Muncy Bank 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 Muncy Bank will offset losses from the drop in Muncy Bank'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 |
| Muncy Bank vs. Main Street Financial | Muncy Bank vs. Susquehanna Community Financial | Muncy Bank vs. First Keystone Corp | Muncy Bank vs. Mifflinburg Bancorp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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