Which is a more watertight corner for a house sided in sawn cedar shingles, woven corners or cornerboards?
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The best answer is "It Depends." I'd say both have benefits and both have drawbacks. The way I look at it is from aestetic and installation perspectives. What look do you want? How much work do you want? The look is subjective so I'll leave it alone. Woven corners are much more time consuming than boards.
To your specific question. Rather than worry about which will be more weather resistant, you can prepare the corner before the shingles and / or cornerboards go on in a fashion that will resist water.
Here's what I'd do: Install housewrap around the house and detail it well. Then apply a 12" wide to 18" wide strip of waterproof shingle underlayment or peel and stick window flashing membrane. (I recommend Grace Ice and Water Shield or Vycor - OR one of the other plastic surfaced WSUs. With the membrane in place, no matter what happens to your corner details there remains a waterproof drainage layer beneath. Just be sure if you use cornerboards to install the WSU at least 4 to 6 in wider than the width of the cornerboard. If you use a very wide cornerboard you may need to install a sheet of WSU greater than 18" .
You could use a 'second best' installation by using #30 tarpaper rather than WSU but be careful not to crack the corner of the paper when installing.
Mike Guertin