Correlation Between Juniata Valley and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both Juniata Valley and Citizens 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 Citizens 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 Citizens Financial Corp, you can compare the effects of market volatilities on Juniata Valley and Citizens 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 Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juniata Valley and Citizens Financial.
Diversification Opportunities for Juniata Valley and Citizens Financial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Juniata and Citizens is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and Citizens Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens 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 Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial Corp has no effect on the direction of Juniata Valley i.e., Juniata Valley and Citizens Financial go up and down completely randomly.
Pair Corralation between Juniata Valley and Citizens Financial
Given the investment horizon of 90 days Juniata Valley is expected to generate 1.91 times less return on investment than Citizens Financial. In addition to that, Juniata Valley is 1.11 times more volatile than Citizens Financial Corp. It trades about 0.05 of its total potential returns per unit of risk. Citizens Financial Corp is currently generating about 0.1 per unit of volatility. If you would invest 1,860 in Citizens Financial Corp on September 25, 2024 and sell it today you would earn a total of 565.00 from holding Citizens Financial Corp or generate 30.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.2% |
Values | Daily Returns |
Juniata Valley Financial vs. Citizens Financial Corp
Performance |
Timeline |
Juniata Valley Financial |
Citizens Financial Corp |
Juniata Valley and Citizens Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Juniata Valley and Citizens Financial
The main advantage of trading using opposite Juniata Valley and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juniata Valley position performs unexpectedly, Citizens 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 Citizens Financial will offset losses from the drop in Citizens Financial's long position.Juniata Valley vs. FNB Inc | Juniata Valley vs. Apollo Bancorp | Juniata Valley vs. Commercial National Financial | Juniata Valley vs. Eastern Michigan Financial |
Citizens Financial vs. Banco Bradesco SA | Citizens Financial vs. Itau Unibanco Banco | Citizens Financial vs. Lloyds Banking Group | Citizens Financial vs. Deutsche Bank AG |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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