Correlation Between Virtus Investment and Juniata Valley

Can any of the company-specific risk be diversified away by investing in both Virtus Investment 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 Virtus Investment and Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Virtus Investment Partners, and Juniata Valley Financial, you can compare the effects of market volatilities on Virtus Investment 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 Virtus Investment with a short position of Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Juniata Valley.

Diversification Opportunities for Virtus Investment and Juniata Valley

0.54

Correlation Coefficient

Virtus Investment  Juniata Valley

Very weak diversification

The 3 months correlation between Virtus and Juniata is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners, 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 Virtus Investment 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 Virtus Investment Partners, 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 Virtus Investment i.e., Virtus Investment and Juniata Valley go up and down completely randomly.

Pair Corralation between Virtus Investment and Juniata Valley

Given the investment horizon of 90 days Virtus Investment Partners, is expected to under-perform the Juniata Valley. In addition to that, Virtus Investment is 1.07 times more volatile than Juniata Valley Financial. It trades about -0.46 of its total potential returns per unit of risk. Juniata Valley Financial is currently generating about -0.13 per unit of volatility. If you would invest  1,300  in Juniata Valley Financial on October 11, 2024 and sell it today you would lose (47.00) from holding Juniata Valley Financial or give up 3.62% of portfolio value over 90 days.

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

Virtus Investment Partners,  vs.  Juniata Valley Financial

Virtus Investment

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus Investment Partners, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Virtus Investment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Juniata Valley Financial

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Juniata Valley Financial are ranked lower than 6 (%) 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.

Pair Trading with Virtus Investment and Juniata Valley

The main advantage of trading using opposite Virtus Investment and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment 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 Virtus Investment Partners, 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.