Correlation Between Codorus Valley and LINKBANCORP
Can any of the company-specific risk be diversified away by investing in both Codorus Valley and LINKBANCORP 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 LINKBANCORP 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 LINKBANCORP, you can compare the effects of market volatilities on Codorus Valley and LINKBANCORP 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 LINKBANCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codorus Valley and LINKBANCORP.
Diversification Opportunities for Codorus Valley and LINKBANCORP
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Codorus and LINKBANCORP is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Codorus Valley Bancorp and LINKBANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINKBANCORP 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 LINKBANCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINKBANCORP has no effect on the direction of Codorus Valley i.e., Codorus Valley and LINKBANCORP go up and down completely randomly.
Pair Corralation between Codorus Valley and LINKBANCORP
Given the investment horizon of 90 days Codorus Valley Bancorp is expected to generate 0.74 times more return on investment than LINKBANCORP. However, Codorus Valley Bancorp is 1.35 times less risky than LINKBANCORP. It trades about 0.02 of its potential returns per unit of risk. LINKBANCORP is currently generating about 0.0 per unit of risk. If you would invest 2,194 in Codorus Valley Bancorp on August 27, 2024 and sell it today you would earn a total of 210.00 from holding Codorus Valley Bancorp or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.23% |
| Values | Daily Returns |
Codorus Valley Bancorp vs. LINKBANCORP
Performance |
| Timeline |
| Codorus Valley Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LINKBANCORP |
Codorus Valley and LINKBANCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Codorus Valley and LINKBANCORP
The main advantage of trading using opposite Codorus Valley and LINKBANCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codorus Valley position performs unexpectedly, LINKBANCORP 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 LINKBANCORP will offset losses from the drop in LINKBANCORP'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 |
| LINKBANCORP vs. Home Federal Bancorp | LINKBANCORP vs. Lake Shore Bancorp | LINKBANCORP vs. Community West Bancshares | LINKBANCORP vs. Magyar 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |