Correlation Between Codorus Valley and Oak Valley

Can any of the company-specific risk be diversified away by investing in both Codorus Valley and Oak 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 Codorus Valley and Oak Valley 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 Oak Valley Bancorp, you can compare the effects of market volatilities on Codorus Valley and Oak 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 Codorus Valley with a short position of Oak Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Codorus Valley and Oak Valley.

Diversification Opportunities for Codorus Valley and Oak Valley

0.0

Correlation Coefficient

Codorus Valley  Oak Valley

Pay attention - limited upside

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

Pair Corralation between Codorus Valley and Oak Valley

If you would invest (100.00) in Codorus Valley Bancorp on December 28, 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.  Oak Valley 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.

Oak Valley Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oak Valley Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Codorus Valley and Oak Valley

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

The idea behind Codorus Valley Bancorp and Oak Valley 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.