Correlation Between Juniata Valley and Treasury Wine
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Treasury Wine 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 Treasury Wine 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 Treasury Wine Estates, you can compare the effects of market volatilities on Juniata Valley and Treasury Wine 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 Treasury Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Treasury Wine.
Diversification Opportunities for Juniata Valley and Treasury Wine
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniata and Treasury is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Treasury Wine Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasury Wine Estates 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 Treasury Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasury Wine Estates has no effect on the direction of Juniata Valley i.e., Juniata Valley and Treasury Wine go up and down completely randomly.
Pair Corralation between Juniata Valley and Treasury Wine
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 1.2 times more return on investment than Treasury Wine. However, Juniata Valley is 1.2 times more volatile than Treasury Wine Estates. It trades about 0.05 of its potential returns per unit of risk. Treasury Wine Estates is currently generating about 0.0 per unit of risk. If you would invest 1,206 in Juniata Valley Financial on September 1, 2024 and sell it today you would earn a total of 144.00 from holding Juniata Valley Financial or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Juniata Valley Financial vs. Treasury Wine Estates
Performance |
| Timeline |
| Juniata Valley Financial |
| Treasury Wine Estates |
Juniata Valley and Treasury Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Treasury Wine
The main advantage of trading using opposite Juniata Valley and Treasury Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Treasury Wine 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 Treasury Wine will offset losses from the drop in Treasury Wine's long position.| Juniata Valley vs. HUMANA INC | Juniata Valley vs. SCOR PK | Juniata Valley vs. Aquagold International | Juniata Valley vs. Thrivent High Yield |
| Treasury Wine vs. Pernod Ricard SA | Treasury Wine vs. Willamette Valley Vineyards | Treasury Wine vs. MGP Ingredients | Treasury Wine vs. Duckhorn Portfolio |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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