Correlation Between GameStop Corp and Juniata Valley

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GameStop Corp 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 GameStop Corp and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Juniata Valley Financial, you can compare the effects of market volatilities on GameStop Corp 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 GameStop Corp with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Juniata Valley.

Diversification Opportunities for GameStop Corp and Juniata Valley

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between GameStop and Juniata is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp 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 GameStop Corp 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 GameStop Corp 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 GameStop Corp i.e., GameStop Corp and Juniata Valley go up and down completely randomly.

Pair Corralation between GameStop Corp and Juniata Valley

Considering the 90-day investment horizon GameStop Corp is expected to generate 1.61 times more return on investment than Juniata Valley. However, GameStop Corp is 1.61 times more volatile than Juniata Valley Financial. It trades about 0.05 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  1,910  in GameStop Corp on September 17, 2024 and sell it today you would earn a total of  902.00  from holding GameStop Corp or generate 47.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy88.38%
ValuesDaily Returns

GameStop Corp  vs.  Juniata Valley Financial

 Performance 
       Timeline  
GameStop Corp 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in GameStop Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain primary indicators, GameStop Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.
Juniata Valley Financial 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Juniata Valley Financial are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Juniata Valley is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

GameStop Corp and Juniata Valley Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GameStop Corp and Juniata Valley

The main advantage of trading using opposite GameStop Corp and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp 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.
The idea behind GameStop Corp and Juniata Valley Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Other Complementary Tools

Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Commodity Directory
Find actively traded commodities issued by global exchanges
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities