Correlation Between HV Bancorp and Orange County
Can any of the company-specific risk be diversified away by investing in both HV Bancorp and Orange County 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 Orange County into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HV Bancorp and Orange County Bancorp, you can compare the effects of market volatilities on HV Bancorp and Orange County 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 Orange County. Check out your portfolio center. Please also check ongoing floating volatility patterns of HV Bancorp and Orange County.
Diversification Opportunities for HV Bancorp and Orange County
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between HVBC and Orange is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HV Bancorp and Orange County Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orange County 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 Orange County. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orange County Bancorp has no effect on the direction of HV Bancorp i.e., HV Bancorp and Orange County go up and down completely randomly.
Pair Corralation between HV Bancorp and Orange County
If you would invest 5,907 in Orange County Bancorp on August 29, 2024 and sell it today you would lose (61.00) from holding Orange County Bancorp or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
HV Bancorp vs. Orange County Bancorp
Performance |
| Timeline |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Orange County Bancorp |
HV Bancorp and Orange County Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HV Bancorp and Orange County
The main advantage of trading using opposite HV Bancorp and Orange County positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HV Bancorp position performs unexpectedly, Orange County 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 Orange County will offset losses from the drop in Orange County'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 |
| Orange County vs. Southern States Bancshares | Orange County vs. US Century Bank | Orange County vs. Third Coast Bancshares | Orange County vs. Esquire Financial Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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