Correlation Between Juniata Valley and SHF Holdings
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and SHF Holdings 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 SHF Holdings 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 SHF Holdings, you can compare the effects of market volatilities on Juniata Valley and SHF Holdings 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 SHF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and SHF Holdings.
Diversification Opportunities for Juniata Valley and SHF Holdings
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Juniata and SHF is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and SHF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHF Holdings 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 SHF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHF Holdings has no effect on the direction of Juniata Valley i.e., Juniata Valley and SHF Holdings go up and down completely randomly.
Pair Corralation between Juniata Valley and SHF Holdings
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 0.26 times more return on investment than SHF Holdings. However, Juniata Valley Financial is 3.88 times less risky than SHF Holdings. It trades about 0.21 of its potential returns per unit of risk. SHF Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,226 in Juniata Valley Financial on September 1, 2024 and sell it today you would earn a total of 124.00 from holding Juniata Valley Financial or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Juniata Valley Financial vs. SHF Holdings
Performance |
| Timeline |
| Juniata Valley Financial |
| SHF Holdings |
Juniata Valley and SHF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and SHF Holdings
The main advantage of trading using opposite Juniata Valley and SHF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, SHF Holdings 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 SHF Holdings will offset losses from the drop in SHF Holdings' long position.| Juniata Valley vs. HUMANA INC | Juniata Valley vs. SCOR PK | Juniata Valley vs. Aquagold International | Juniata Valley vs. Thrivent High Yield |
| SHF Holdings vs. KeyCorp | SHF Holdings vs. Commonwealth Bank of | SHF Holdings vs. BCB Bancorp | SHF Holdings vs. Juniata Valley Financial |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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