Correlation Between Codorus Valley and Franklin Financial
Can any of the company-specific risk be diversified away by investing in both Codorus Valley and Franklin 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 Codorus Valley and Franklin Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Codorus Valley Bancorp and Franklin Financial Services, you can compare the effects of market volatilities on Codorus Valley and Franklin 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 Codorus Valley with a short position of Franklin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codorus Valley and Franklin Financial.
Diversification Opportunities for Codorus Valley and Franklin Financial
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Codorus and Franklin is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Codorus Valley Bancorp and Franklin Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Financial and Codorus 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 Codorus Valley Bancorp are associated (or correlated) with Franklin Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Financial has no effect on the direction of Codorus Valley i.e., Codorus Valley and Franklin Financial go up and down completely randomly.
Pair Corralation between Codorus Valley and Franklin Financial
If you would invest 3,008 in Franklin Financial Services on August 27, 2024 and sell it today you would earn a total of 351.00 from holding Franklin Financial Services or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Codorus Valley Bancorp vs. Franklin Financial Services
Performance |
| Timeline |
| Codorus Valley Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Franklin Financial |
Codorus Valley and Franklin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codorus Valley and Franklin Financial
The main advantage of trading using opposite Codorus Valley and Franklin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codorus Valley position performs unexpectedly, Franklin 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 Franklin Financial will offset losses from the drop in Franklin Financial's long position.| Codorus Valley vs. Home Federal Bancorp | Codorus Valley vs. First Financial Northwest | Codorus Valley vs. First Northwest Bancorp | Codorus Valley vs. First Capital |
| Franklin Financial vs. Magyar Bancorp | Franklin Financial vs. Affinity Bancshares | Franklin Financial vs. Home Federal Bancorp | Franklin Financial vs. Sound Financial Bancorp |
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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