Correlation Between Juniata Valley and Nova Minerals
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Nova Minerals 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 Nova Minerals 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 Nova Minerals Limited, you can compare the effects of market volatilities on Juniata Valley and Nova Minerals 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 Nova Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Nova Minerals.
Diversification Opportunities for Juniata Valley and Nova Minerals
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Juniata and Nova is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Nova Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Minerals Limited 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 Nova Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Minerals Limited has no effect on the direction of Juniata Valley i.e., Juniata Valley and Nova Minerals go up and down completely randomly.
Pair Corralation between Juniata Valley and Nova Minerals
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 0.61 times more return on investment than Nova Minerals. However, Juniata Valley Financial is 1.65 times less risky than Nova Minerals. It trades about 0.03 of its potential returns per unit of risk. Nova Minerals Limited is currently generating about -0.15 per unit of risk. If you would invest 1,275 in Juniata Valley Financial on November 28, 2024 and sell it today you would earn a total of 15.00 from holding Juniata Valley Financial or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Juniata Valley Financial vs. Nova Minerals Limited
Performance |
| Timeline |
| Juniata Valley Financial |
| Nova Minerals Limited |
Juniata Valley and Nova Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Nova Minerals
The main advantage of trading using opposite Juniata Valley and Nova Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Nova Minerals 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 Nova Minerals will offset losses from the drop in Nova Minerals' long position.| Juniata Valley vs. FNB Inc | Juniata Valley vs. Apollo Bancorp | Juniata Valley vs. Commercial National Financial | Juniata Valley vs. Eastern Michigan Financial |
| Nova Minerals vs. Sonos Inc | Nova Minerals vs. Academy Sports Outdoors | Nova Minerals vs. Glorywin Entertainment Group | Nova Minerals vs. Constellation Brands Class |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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