Correlation Between Juniata Valley and CCSB Financial

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

Diversification Opportunities for Juniata Valley and CCSB Financial

0.45

Correlation Coefficient

Juniata Valley  CCSB Financial

Very weak diversification

The 3 months correlation between Juniata and CCSB is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp 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 CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Juniata Valley i.e., Juniata Valley and CCSB Financial go up and down completely randomly.

Pair Corralation between Juniata Valley and CCSB Financial

Given the investment horizon of 90 days Juniata Valley is expected to generate 1.56 times less return on investment than CCSB Financial. In addition to that, Juniata Valley is 1.16 times more volatile than CCSB Financial Corp. It trades about 0.09 of its total potential returns per unit of risk. CCSB Financial Corp is currently generating about 0.16 per unit of volatility. If you would invest  1,015  in CCSB Financial Corp on December 5, 2024 and sell it today you would earn a total of  65.00  from holding CCSB Financial Corp or generate 6.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Juniata Valley Financial  vs.  CCSB Financial Corp

Juniata Valley Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Juniata Valley Financial has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

CCSB Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CCSB Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Juniata Valley and CCSB Financial

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

The idea behind Juniata Valley Financial and CCSB Financial Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.