Correlation Between Juniata Valley and Univest Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Univest Pennsylvania 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 Univest Pennsylvania 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 Univest Pennsylvania, you can compare the effects of market volatilities on Juniata Valley and Univest Pennsylvania 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 Univest Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Univest Pennsylvania.
Diversification Opportunities for Juniata Valley and Univest Pennsylvania
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Juniata and Univest is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania 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 Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of Juniata Valley i.e., Juniata Valley and Univest Pennsylvania go up and down completely randomly.
Pair Corralation between Juniata Valley and Univest Pennsylvania
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 1.38 times more return on investment than Univest Pennsylvania. However, Juniata Valley is 1.38 times more volatile than Univest Pennsylvania. It trades about 0.21 of its potential returns per unit of risk. Univest Pennsylvania is currently generating about -0.01 per unit of risk. If you would invest 1,185 in Juniata Valley Financial on November 29, 2024 and sell it today you would earn a total of 115.00 from holding Juniata Valley Financial or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juniata Valley Financial vs. Univest Pennsylvania
Performance |
| Timeline |
| Juniata Valley Financial |
| Univest Pennsylvania |
Juniata Valley and Univest Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Univest Pennsylvania
The main advantage of trading using opposite Juniata Valley and Univest Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Univest Pennsylvania 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 Univest Pennsylvania will offset losses from the drop in Univest Pennsylvania'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 |
| Univest Pennsylvania vs. Waterstone Financial | Univest Pennsylvania vs. Mid Penn Bancorp | Univest Pennsylvania vs. ST Bancorp | Univest Pennsylvania vs. Republic Bancorp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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