Correlation Between Oak Valley and Citizens Holding
Can any of the company-specific risk be diversified away by investing in both Oak Valley and Citizens Holding 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 Oak Valley and Citizens Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oak Valley Bancorp and Citizens Holding, you can compare the effects of market volatilities on Oak Valley and Citizens Holding 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 Oak Valley with a short position of Citizens Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oak Valley and Citizens Holding.
Diversification Opportunities for Oak Valley and Citizens Holding
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oak and Citizens is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Oak Valley Bancorp and Citizens Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Holding and Oak 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 Oak Valley Bancorp are associated (or correlated) with Citizens Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Holding has no effect on the direction of Oak Valley i.e., Oak Valley and Citizens Holding go up and down completely randomly.
Pair Corralation between Oak Valley and Citizens Holding
If you would invest 2,719 in Oak Valley Bancorp on August 29, 2024 and sell it today you would earn a total of 378.00 from holding Oak Valley Bancorp or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Oak Valley Bancorp vs. Citizens Holding
Performance |
| Timeline |
| Oak Valley Bancorp |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oak Valley and Citizens Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oak Valley and Citizens Holding
The main advantage of trading using opposite Oak Valley and Citizens Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oak Valley position performs unexpectedly, Citizens Holding 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 Citizens Holding will offset losses from the drop in Citizens Holding's long position.| Oak Valley vs. Fifth Third Bancorp | Oak Valley vs. Huntington Bancshares Incorporated | Oak Valley vs. MT Bank |
| Citizens Holding vs. Home Federal Bancorp | Citizens Holding vs. Lake Shore Bancorp | Citizens Holding vs. Community West Bancshares | Citizens Holding 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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