Correlation Between Regions Financial and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Regions Financial and Juniata Valley 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 Regions Financial and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regions Financial and Juniata Valley Financial, you can compare the effects of market volatilities on Regions Financial and Juniata Valley 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 Regions Financial with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and Juniata Valley.
Diversification Opportunities for Regions Financial and Juniata Valley
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regions and Juniata is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and Juniata Valley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniata Valley Financial and Regions Financial 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 Regions Financial are associated (or correlated) with Juniata Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniata Valley Financial has no effect on the direction of Regions Financial i.e., Regions Financial and Juniata Valley go up and down completely randomly.
Pair Corralation between Regions Financial and Juniata Valley
Assuming the 90 days horizon Regions Financial is expected to generate 2.14 times less return on investment than Juniata Valley. But when comparing it to its historical volatility, Regions Financial is 6.17 times less risky than Juniata Valley. It trades about 0.15 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,182 in Juniata Valley Financial on September 2, 2024 and sell it today you would earn a total of 168.00 from holding Juniata Valley Financial or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 74.6% |
| Values | Daily Returns |
Regions Financial vs. Juniata Valley Financial
Performance |
| Timeline |
| Regions Financial |
| Juniata Valley Financial |
Regions Financial and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regions Financial and Juniata Valley
The main advantage of trading using opposite Regions Financial and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, Juniata Valley 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 Juniata Valley will offset losses from the drop in Juniata Valley's long position.| Regions Financial vs. Western Union Co | Regions Financial vs. Pintec Technology Holdings | Regions Financial vs. Encore Capital Group | Regions Financial vs. Pinterest |
| Juniata Valley vs. FNB Inc | Juniata Valley vs. Apollo Bancorp | Juniata Valley vs. Commercial National Financial | Juniata Valley vs. Eastern Michigan Financial |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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