Correlation Between Juniata Valley and Apollo Bancorp

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

Diversification Opportunities for Juniata Valley and Apollo Bancorp

-0.57

Correlation Coefficient

Juniata Valley  Apollo Bancorp

Excellent diversification

The 3 months correlation between Juniata and Apollo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp 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 Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Juniata Valley i.e., Juniata Valley and Apollo Bancorp go up and down completely randomly.

Pair Corralation between Juniata Valley and Apollo Bancorp

Given the investment horizon of 90 days Juniata Valley Financial is expected to generate 1.29 times more return on investment than Apollo Bancorp. However, Juniata Valley is 1.29 times more volatile than Apollo Bancorp. It trades about 0.09 of its potential returns per unit of risk. Apollo Bancorp is currently generating about -0.14 per unit of risk. If you would invest  1,157  in Juniata Valley Financial on October 20, 2024 and sell it today you would earn a total of  123.00  from holding Juniata Valley Financial or generate 10.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Juniata Valley Financial  vs.  Apollo Bancorp

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 uncertain basic indicators, Juniata Valley may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Apollo Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Juniata Valley and Apollo Bancorp

The main advantage of trading using opposite Juniata Valley and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Apollo Bancorp 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp's long position.

The idea behind Juniata Valley Financial and Apollo Bancorp 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.