Correlation Between Juniata Valley and Trugolf
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Trugolf 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 Trugolf 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 Trugolf, you can compare the effects of market volatilities on Juniata Valley and Trugolf 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 Trugolf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Trugolf.
Diversification Opportunities for Juniata Valley and Trugolf
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Juniata and Trugolf is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Trugolf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trugolf 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 Trugolf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trugolf has no effect on the direction of Juniata Valley i.e., Juniata Valley and Trugolf go up and down completely randomly.
Pair Corralation between Juniata Valley and Trugolf
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 0.26 times more return on investment than Trugolf. However, Juniata Valley Financial is 3.82 times less risky than Trugolf. It trades about 0.01 of its potential returns per unit of risk. Trugolf is currently generating about -0.04 per unit of risk. If you would invest 1,363 in Juniata Valley Financial on December 4, 2024 and sell it today you would lose (78.00) from holding Juniata Valley Financial or give up 5.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.73% |
| Values | Daily Returns |
Juniata Valley Financial vs. Trugolf
Performance |
| Timeline |
| Juniata Valley Financial |
| Trugolf |
Juniata Valley and Trugolf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Trugolf
The main advantage of trading using opposite Juniata Valley and Trugolf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Trugolf 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 Trugolf will offset losses from the drop in Trugolf'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 |
| Trugolf vs. Air Lease | Trugolf vs. Multi Ways Holdings | Trugolf vs. Entravision Communications | Trugolf vs. Broadstone Net Lease |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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