Correlation Between HV Bancorp and Codorus Valley
Can any of the company-specific risk be diversified away by investing in both HV Bancorp and Codorus 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 HV Bancorp and Codorus Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HV Bancorp and Codorus Valley Bancorp, you can compare the effects of market volatilities on HV Bancorp and Codorus 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 HV Bancorp with a short position of Codorus Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of HV Bancorp and Codorus Valley.
Diversification Opportunities for HV Bancorp and Codorus Valley
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HVBC and Codorus is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding HV Bancorp and Codorus Valley Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codorus Valley Bancorp and HV Bancorp 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 HV Bancorp are associated (or correlated) with Codorus Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codorus Valley Bancorp has no effect on the direction of HV Bancorp i.e., HV Bancorp and Codorus Valley go up and down completely randomly.
Pair Corralation between HV Bancorp and Codorus Valley
Given the investment horizon of 90 days HV Bancorp is expected to generate 1.16 times more return on investment than Codorus Valley. However, HV Bancorp is 1.16 times more volatile than Codorus Valley Bancorp. It trades about 0.1 of its potential returns per unit of risk. Codorus Valley Bancorp is currently generating about 0.02 per unit of risk. If you would invest 2,683 in HV Bancorp on August 27, 2024 and sell it today you would earn a total of 777.00 from holding HV Bancorp or generate 28.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 34.1% |
| Values | Daily Returns |
HV Bancorp vs. Codorus Valley Bancorp
Performance |
| Timeline |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Codorus Valley Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HV Bancorp and Codorus Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HV Bancorp and Codorus Valley
The main advantage of trading using opposite HV Bancorp and Codorus Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HV Bancorp position performs unexpectedly, Codorus 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 Codorus Valley will offset losses from the drop in Codorus Valley's long position.| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore Bancorp |
| Codorus Valley vs. Home Federal Bancorp | Codorus Valley vs. First Financial Northwest | Codorus Valley vs. First Northwest Bancorp | Codorus Valley vs. First Capital |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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