Correlation Between Eagle Bancorp and Old National
Can any of the company-specific risk be diversified away by investing in both Eagle Bancorp and Old National 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 Old National 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 Old National Bancorp, you can compare the effects of market volatilities on Eagle Bancorp and Old National 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 Old National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bancorp and Old National.
Diversification Opportunities for Eagle Bancorp and Old National
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Old is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bancorp Montana and Old National Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old National 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 Old National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old National Bancorp has no effect on the direction of Eagle Bancorp i.e., Eagle Bancorp and Old National go up and down completely randomly.
Pair Corralation between Eagle Bancorp and Old National
Given the investment horizon of 90 days Eagle Bancorp is expected to generate 1.32 times less return on investment than Old National. In addition to that, Eagle Bancorp is 1.25 times more volatile than Old National Bancorp. It trades about 0.02 of its total potential returns per unit of risk. Old National Bancorp is currently generating about 0.03 per unit of volatility. If you would invest 2,176 in Old National Bancorp on August 28, 2024 and sell it today you would earn a total of 335.00 from holding Old National Bancorp or generate 15.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Bancorp Montana vs. Old National Bancorp
Performance |
| Timeline |
| Eagle Bancorp Montana |
| Old National Bancorp |
Eagle Bancorp and Old National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bancorp and Old National
The main advantage of trading using opposite Eagle Bancorp and Old National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bancorp position performs unexpectedly, Old National 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 Old National will offset losses from the drop in Old National's long position.| Eagle Bancorp vs. Fifth Third Bancorp | Eagle Bancorp vs. Zions Bancorporation | Eagle Bancorp vs. Huntington Bancshares Incorporated | Eagle Bancorp vs. Comerica |
| Old National vs. Capital One Financial | Old National vs. Capital One Financial | Old National vs. Bank of America |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |