Correlation Between Eagle Bancorp and Jeffersonville Bancorp
Can any of the company-specific risk be diversified away by investing in both Eagle Bancorp and Jeffersonville Bancorp 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 Eagle Bancorp and Jeffersonville Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Bancorp Montana and Jeffersonville Bancorp, you can compare the effects of market volatilities on Eagle Bancorp and Jeffersonville Bancorp 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 Eagle Bancorp with a short position of Jeffersonville Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bancorp and Jeffersonville Bancorp.
Diversification Opportunities for Eagle Bancorp and Jeffersonville Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and Jeffersonville is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bancorp Montana and Jeffersonville Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffersonville Bancorp and Eagle 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 Eagle Bancorp Montana are associated (or correlated) with Jeffersonville Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffersonville Bancorp has no effect on the direction of Eagle Bancorp i.e., Eagle Bancorp and Jeffersonville Bancorp go up and down completely randomly.
Pair Corralation between Eagle Bancorp and Jeffersonville Bancorp
If you would invest 1,492 in Eagle Bancorp Montana on November 28, 2024 and sell it today you would earn a total of 298.00 from holding Eagle Bancorp Montana or generate 19.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Eagle Bancorp Montana vs. Jeffersonville Bancorp
Performance |
| Timeline |
| Eagle Bancorp Montana |
| Jeffersonville Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Eagle Bancorp and Jeffersonville Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bancorp and Jeffersonville Bancorp
The main advantage of trading using opposite Eagle Bancorp and Jeffersonville Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bancorp position performs unexpectedly, Jeffersonville Bancorp 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 Jeffersonville Bancorp will offset losses from the drop in Jeffersonville Bancorp's long position.| Eagle Bancorp vs. Home Federal Bancorp | Eagle Bancorp vs. First Financial Northwest | Eagle Bancorp vs. First Northwest Bancorp | Eagle Bancorp vs. First Capital |
| Jeffersonville Bancorp vs. Heritage NOLA Bancorp | Jeffersonville Bancorp vs. Rhinebeck Bancorp | Jeffersonville Bancorp vs. Bridgewater Bancshares Depositary | Jeffersonville Bancorp vs. Bank of Marin |
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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