Correlation Between Peoples Bancorp and Ohio Valley
Can any of the company-specific risk be diversified away by investing in both Peoples Bancorp and Ohio 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 Peoples Bancorp and Ohio Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peoples Bancorp and Ohio Valley Banc, you can compare the effects of market volatilities on Peoples Bancorp and Ohio 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 Peoples Bancorp with a short position of Ohio Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Bancorp and Ohio Valley.
Diversification Opportunities for Peoples Bancorp and Ohio Valley
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Peoples and Ohio is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Bancorp and Ohio Valley Banc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ohio Valley Banc and Peoples 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 Peoples Bancorp are associated (or correlated) with Ohio Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ohio Valley Banc has no effect on the direction of Peoples Bancorp i.e., Peoples Bancorp and Ohio Valley go up and down completely randomly.
Pair Corralation between Peoples Bancorp and Ohio Valley
Given the investment horizon of 90 days Peoples Bancorp is expected to generate 1.04 times more return on investment than Ohio Valley. However, Peoples Bancorp is 1.04 times more volatile than Ohio Valley Banc. It trades about 0.03 of its potential returns per unit of risk. Ohio Valley Banc is currently generating about 0.01 per unit of risk. If you would invest 2,744 in Peoples Bancorp on November 10, 2024 and sell it today you would earn a total of 559.00 from holding Peoples Bancorp or generate 20.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.77% |
| Values | Daily Returns |
Peoples Bancorp vs. Ohio Valley Banc
Performance |
| Timeline |
| Peoples Bancorp |
| Ohio Valley Banc |
Peoples Bancorp and Ohio Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Bancorp and Ohio Valley
The main advantage of trading using opposite Peoples Bancorp and Ohio Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Bancorp position performs unexpectedly, Ohio 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 Ohio Valley will offset losses from the drop in Ohio Valley's long position.| Peoples Bancorp vs. Eagle Bancorp | Peoples Bancorp vs. Northrim BanCorp | Peoples Bancorp vs. United Bankshares | Peoples Bancorp vs. Pacific Premier Bancorp |
| Ohio Valley vs. Home Federal Bancorp | Ohio Valley vs. Lake Shore Bancorp | Ohio Valley vs. Community West Bancshares | Ohio Valley 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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