Correlation Between Eagle Financial and Enterprise Financial
Can any of the company-specific risk be diversified away by investing in both Eagle Financial and Enterprise 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 Eagle Financial and Enterprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Financial Bancorp and Enterprise Financial Services, you can compare the effects of market volatilities on Eagle Financial and Enterprise 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 Eagle Financial with a short position of Enterprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Financial and Enterprise Financial.
Diversification Opportunities for Eagle Financial and Enterprise Financial
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and Enterprise is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Bancorp and Enterprise Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enterprise Financial and Eagle Financial 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 Financial Bancorp are associated (or correlated) with Enterprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enterprise Financial has no effect on the direction of Eagle Financial i.e., Eagle Financial and Enterprise Financial go up and down completely randomly.
Pair Corralation between Eagle Financial and Enterprise Financial
If you would invest 1,810 in Eagle Financial Bancorp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Eagle Financial Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Eagle Financial Bancorp vs. Enterprise Financial Services
Performance |
| Timeline |
| Eagle Financial Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enterprise Financial |
Eagle Financial and Enterprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Financial and Enterprise Financial
The main advantage of trading using opposite Eagle Financial and Enterprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Financial position performs unexpectedly, Enterprise 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 Enterprise Financial will offset losses from the drop in Enterprise Financial's long position.| Eagle Financial vs. Enterprise Financial Services | Eagle Financial vs. Pioneer Bancorp | Eagle Financial vs. LCNB Corporation | Eagle Financial vs. Affinity Bancshares |
| Enterprise Financial vs. Capital One Financial | Enterprise Financial vs. Capital One Financial | Enterprise Financial 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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