Correlation Between HNI Corp and Juniata Valley

Can any of the company-specific risk be diversified away by investing in both HNI 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 HNI 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 HNI Corp and Juniata Valley Financial, you can compare the effects of market volatilities on HNI 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 HNI Corp with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNI Corp and Juniata Valley.

Diversification Opportunities for HNI Corp and Juniata Valley

0.55

Correlation Coefficient

HNI Corp  Juniata Valley

Very weak diversification

The 3 months correlation between HNI and Juniata is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding HNI 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 HNI 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 HNI 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 HNI Corp i.e., HNI Corp and Juniata Valley go up and down completely randomly.

Pair Corralation between HNI Corp and Juniata Valley

Considering the 90-day investment horizon HNI Corp is expected to generate 0.69 times more return on investment than Juniata Valley. However, HNI Corp is 1.45 times less risky than Juniata Valley. It trades about 0.08 of its potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.04 per unit of risk. If you would invest  4,367  in HNI Corp on September 24, 2024 and sell it today you would earn a total of  796.00  from holding HNI Corp or generate 18.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.21%
Values	Daily Returns

HNI Corp  vs.  Juniata Valley Financial

HNI Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HNI Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, HNI Corp is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Juniata Valley Financial

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Juniata Valley Financial are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Juniata Valley reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HNI Corp and Juniata Valley

The main advantage of trading using opposite HNI Corp and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNI 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 HNI 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.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.