Correlation Between Juniata Valley and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Molson Coors 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 Molson Coors 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 Molson Coors Brewing, you can compare the effects of market volatilities on Juniata Valley and Molson Coors 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 Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Molson Coors.
Diversification Opportunities for Juniata Valley and Molson Coors
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Juniata and Molson is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Molson Coors Brewing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Brewing 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 Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Brewing has no effect on the direction of Juniata Valley i.e., Juniata Valley and Molson Coors go up and down completely randomly.
Pair Corralation between Juniata Valley and Molson Coors
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 1.23 times more return on investment than Molson Coors. However, Juniata Valley is 1.23 times more volatile than Molson Coors Brewing. It trades about 0.2 of its potential returns per unit of risk. Molson Coors Brewing is currently generating about 0.24 per unit of risk. If you would invest 1,201 in Juniata Valley Financial on August 27, 2024 and sell it today you would earn a total of 104.00 from holding Juniata Valley Financial or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniata Valley Financial vs. Molson Coors Brewing
Performance |
| Timeline |
| Juniata Valley Financial |
| Molson Coors Brewing |
Juniata Valley and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Molson Coors
The main advantage of trading using opposite Juniata Valley and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.| Juniata Valley vs. Invesco High Income | Juniata Valley vs. Blackrock Muniholdings Ny | Juniata Valley vs. MFS Investment Grade | Juniata Valley vs. Federated Premier Municipal |
| Molson Coors vs. Budweiser Brewing | Molson Coors vs. Boston Beer | Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Ambev SA ADR |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |