Correlation Between Codorus Valley and Citizens Community

Can any of the company-specific risk be diversified away by investing in both Codorus Valley and Citizens Community 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 Codorus Valley and Citizens Community into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Codorus Valley Bancorp and Citizens Community Bancorp, you can compare the effects of market volatilities on Codorus Valley and Citizens Community 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 Codorus Valley with a short position of Citizens Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codorus Valley and Citizens Community.

Diversification Opportunities for Codorus Valley and Citizens Community

0.0

Correlation Coefficient

Codorus Valley  Citizens Community

Pay attention - limited upside

The 3 months correlation between Codorus and Citizens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Codorus Valley Bancorp and Citizens Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Community and Codorus 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 Codorus Valley Bancorp are associated (or correlated) with Citizens Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Community has no effect on the direction of Codorus Valley i.e., Codorus Valley and Citizens Community go up and down completely randomly.

Pair Corralation between Codorus Valley and Citizens Community

If you would invest (100.00) in Codorus Valley Bancorp on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Codorus Valley Bancorp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Codorus Valley Bancorp  vs.  Citizens Community Bancorp

Codorus Valley Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Codorus Valley Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Codorus Valley is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Citizens Community

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citizens Community Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Codorus Valley and Citizens Community

The main advantage of trading using opposite Codorus Valley and Citizens Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Codorus Valley position performs unexpectedly, Citizens Community 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 Community will offset losses from the drop in Citizens Community's long position.

The idea behind Codorus Valley Bancorp and Citizens Community Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..