Correlation Between Orange County and HV Bancorp
Can any of the company-specific risk be diversified away by investing in both Orange County and HV Bancorp 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 Orange County and HV Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orange County Bancorp and HV Bancorp, you can compare the effects of market volatilities on Orange County and HV Bancorp 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 Orange County with a short position of HV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orange County and HV Bancorp.
Diversification Opportunities for Orange County and HV Bancorp
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Orange and HVBC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Orange County Bancorp and HV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HV Bancorp and Orange County 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 Orange County Bancorp are associated (or correlated) with HV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HV Bancorp has no effect on the direction of Orange County i.e., Orange County and HV Bancorp go up and down completely randomly.
Pair Corralation between Orange County and HV Bancorp
If you would invest 4,867 in Orange County Bancorp on August 25, 2024 and sell it today you would earn a total of 1,083 from holding Orange County Bancorp or generate 22.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Orange County Bancorp vs. HV Bancorp
Performance |
| Timeline |
| Orange County Bancorp |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Orange County and HV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orange County and HV Bancorp
The main advantage of trading using opposite Orange County and HV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orange County position performs unexpectedly, HV Bancorp 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 HV Bancorp will offset losses from the drop in HV Bancorp's long position.| Orange County vs. Southern States Bancshares | Orange County vs. US Century Bank | Orange County vs. Third Coast Bancshares | Orange County vs. Esquire Financial Holdings |
| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |