Correlation Between Citizens Holding and Oak Valley
Can any of the company-specific risk be diversified away by investing in both Citizens Holding and Oak 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 Citizens Holding and Oak Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Holding and Oak Valley Bancorp, you can compare the effects of market volatilities on Citizens Holding and Oak 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 Citizens Holding with a short position of Oak Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Holding and Oak Valley.
Diversification Opportunities for Citizens Holding and Oak Valley
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citizens and Oak is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Holding and Oak Valley Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Valley Bancorp and Citizens Holding 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 Citizens Holding are associated (or correlated) with Oak Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Valley Bancorp has no effect on the direction of Citizens Holding i.e., Citizens Holding and Oak Valley go up and down completely randomly.
Pair Corralation between Citizens Holding and Oak Valley
If you would invest 2,719 in Oak Valley Bancorp on August 29, 2024 and sell it today you would earn a total of 378.00 from holding Oak Valley Bancorp or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citizens Holding vs. Oak Valley Bancorp
Performance |
| Timeline |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oak Valley Bancorp |
Citizens Holding and Oak Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Holding and Oak Valley
The main advantage of trading using opposite Citizens Holding and Oak Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Holding position performs unexpectedly, Oak 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 Oak Valley will offset losses from the drop in Oak Valley's long position.| Citizens Holding vs. Home Federal Bancorp | Citizens Holding vs. Lake Shore Bancorp | Citizens Holding vs. Community West Bancshares | Citizens Holding vs. Magyar Bancorp |
| Oak Valley vs. Fifth Third Bancorp | Oak Valley vs. Huntington Bancshares Incorporated | Oak Valley vs. MT Bank |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |