Correlation Between Juniata Valley and Western Union
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Western Union 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 Western Union 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 Western Union Co, you can compare the effects of market volatilities on Juniata Valley and Western Union 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 Western Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Western Union.
Diversification Opportunities for Juniata Valley and Western Union
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Juniata and Western is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Western Union Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Union 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 Western Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Union has no effect on the direction of Juniata Valley i.e., Juniata Valley and Western Union go up and down completely randomly.
Pair Corralation between Juniata Valley and Western Union
Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 2.14 times more return on investment than Western Union. However, Juniata Valley is 2.14 times more volatile than Western Union Co. It trades about 0.02 of its potential returns per unit of risk. Western Union Co is currently generating about 0.0 per unit of risk. If you would invest 1,255 in Juniata Valley Financial on August 29, 2024 and sell it today you would earn a total of 20.00 from holding Juniata Valley Financial or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.18% |
| Values | Daily Returns |
Juniata Valley Financial vs. Western Union Co
Performance |
| Timeline |
| Juniata Valley Financial |
| Western Union |
Juniata Valley and Western Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juniata Valley and Western Union
The main advantage of trading using opposite Juniata Valley and Western Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Western Union 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 Western Union will offset losses from the drop in Western Union's long position.| Juniata Valley vs. Invesco High Income | Juniata Valley vs. Blackrock Muniholdings Ny | Juniata Valley vs. Nuveen California Select | Juniata Valley vs. MFS Investment Grade |
| Western Union vs. American Express | Western Union vs. PayPal Holdings | Western Union vs. Capital One Financial | Western Union vs. Upstart Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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