Correlation Between Oconee Federal and Orange County
Can any of the company-specific risk be diversified away by investing in both Oconee Federal 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 Oconee Federal and Orange County into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oconee Federal Financial and Orange County Bancorp, you can compare the effects of market volatilities on Oconee Federal 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 Oconee Federal with a short position of Orange County. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oconee Federal and Orange County.
Diversification Opportunities for Oconee Federal and Orange County
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oconee and Orange is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oconee Federal Financial 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 Oconee Federal 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 Oconee Federal Financial 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 Oconee Federal i.e., Oconee Federal and Orange County go up and down completely randomly.
Pair Corralation between Oconee Federal and Orange County
If you would invest 2,678 in Orange County Bancorp on November 8, 2024 and sell it today you would earn a total of 22.00 from holding Orange County Bancorp or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Oconee Federal Financial vs. Orange County Bancorp
Performance |
| Timeline |
| Oconee Federal Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Orange County Bancorp |
Oconee Federal and Orange County Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oconee Federal and Orange County
The main advantage of trading using opposite Oconee Federal and Orange County positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oconee Federal 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.| Oconee Federal vs. Home Federal Bancorp | Oconee Federal vs. Community West Bancshares | Oconee Federal vs. Magyar 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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