Correlation Between Universal Media and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both Universal Media 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 Universal Media and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Media Group and Juniata Valley Financial, you can compare the effects of market volatilities on Universal Media 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 Universal Media with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Media and Juniata Valley.
Diversification Opportunities for Universal Media and Juniata Valley
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Universal and Juniata is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Universal Media Group 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 Universal Media 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 Universal Media Group 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 Universal Media i.e., Universal Media and Juniata Valley go up and down completely randomly.
Pair Corralation between Universal Media and Juniata Valley
Given the investment horizon of 90 days Universal Media Group is expected to generate 7.57 times more return on investment than Juniata Valley. However, Universal Media is 7.57 times more volatile than Juniata Valley Financial. It trades about 0.01 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.02 per unit of risk. If you would invest 14.00 in Universal Media Group on November 3, 2024 and sell it today you would lose (10.70) from holding Universal Media Group or give up 76.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Media Group vs. Juniata Valley Financial
Performance |
| Timeline |
| Universal Media Group |
| Juniata Valley Financial |
Universal Media and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Media and Juniata Valley
The main advantage of trading using opposite Universal Media and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Media 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.| Universal Media vs. Robix Environmental Technologies | Universal Media vs. Taiwan Semiconductor Manufacturing | Universal Media vs. ASE Industrial Holding | Universal Media vs. Ironveld Plc |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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