Correlation Between Juniata Valley and NexteGO NV

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

Diversification Opportunities for Juniata Valley and NexteGO NV

0.0

Correlation Coefficient

Juniata Valley  NexteGO NV

Pay attention - limited upside

The 3 months correlation between Juniata and NexteGO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Juniata Valley Financial and NexteGO NV Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexteGO NV Ordinary 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 NexteGO NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexteGO NV Ordinary has no effect on the direction of Juniata Valley i.e., Juniata Valley and NexteGO NV go up and down completely randomly.

Pair Corralation between Juniata Valley and NexteGO NV

If you would invest  0.01  in NexteGO NV Ordinary on December 29, 2024 and sell it today you would earn a total of  0.00  from holding NexteGO NV Ordinary or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Juniata Valley Financial  vs.  NexteGO NV Ordinary

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.

NexteGO NV Ordinary

Risk-Adjusted Performance

Very Weak

Over the last 90 days NexteGO NV Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, NexteGO NV is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Juniata Valley and NexteGO NV

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

The idea behind Juniata Valley Financial and NexteGO NV Ordinary 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.