Correlation Between Affinity Bancshares and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both Affinity Bancshares and Eagle Financial 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 Affinity Bancshares and Eagle Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affinity Bancshares and Eagle Financial Bancorp, you can compare the effects of market volatilities on Affinity Bancshares and Eagle Financial 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 Affinity Bancshares with a short position of Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity Bancshares and Eagle Financial.
Diversification Opportunities for Affinity Bancshares and Eagle Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Affinity and Eagle is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Affinity Bancshares and Eagle Financial Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Bancorp and Affinity Bancshares 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 Affinity Bancshares are associated (or correlated) with Eagle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Financial Bancorp has no effect on the direction of Affinity Bancshares i.e., Affinity Bancshares and Eagle Financial go up and down completely randomly.
Pair Corralation between Affinity Bancshares and Eagle Financial
If you would invest 2,124 in Affinity Bancshares on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Affinity Bancshares or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Affinity Bancshares vs. Eagle Financial Bancorp
Performance |
| Timeline |
| Affinity Bancshares |
| Eagle Financial Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Affinity Bancshares and Eagle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affinity Bancshares and Eagle Financial
The main advantage of trading using opposite Affinity Bancshares and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affinity Bancshares position performs unexpectedly, Eagle Financial 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 Eagle Financial will offset losses from the drop in Eagle Financial's long position.| Affinity Bancshares vs. Fifth Third Bancorp | Affinity Bancshares vs. Huntington Bancshares Incorporated | Affinity Bancshares vs. Comerica | Affinity Bancshares vs. MT Bank |
| Eagle Financial vs. Enterprise Financial Services | Eagle Financial vs. Pioneer Bancorp | Eagle Financial vs. LCNB Corporation | Eagle Financial vs. Affinity Bancshares |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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