Correlation Between Eagle Financial and Pioneer Bancorp
Can any of the company-specific risk be diversified away by investing in both Eagle Financial and Pioneer 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 Financial and Pioneer Bancorp 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 Pioneer Bancorp, you can compare the effects of market volatilities on Eagle Financial and Pioneer 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 Financial with a short position of Pioneer Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Financial and Pioneer Bancorp.
Diversification Opportunities for Eagle Financial and Pioneer Bancorp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and Pioneer is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Bancorp and Pioneer Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Bancorp 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 Pioneer Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Bancorp has no effect on the direction of Eagle Financial i.e., Eagle Financial and Pioneer Bancorp go up and down completely randomly.
Pair Corralation between Eagle Financial and Pioneer Bancorp
If you would invest 1,113 in Pioneer Bancorp on August 24, 2024 and sell it today you would earn a total of 67.00 from holding Pioneer Bancorp or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Eagle Financial Bancorp vs. Pioneer Bancorp
Performance |
| Timeline |
| Eagle Financial Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pioneer Bancorp |
Eagle Financial and Pioneer Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Financial and Pioneer Bancorp
The main advantage of trading using opposite Eagle Financial and Pioneer Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Financial position performs unexpectedly, Pioneer 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 Pioneer Bancorp will offset losses from the drop in Pioneer Bancorp's long position.| Eagle Financial vs. Enterprise Financial Services | Eagle Financial vs. Pioneer Bancorp | Eagle Financial vs. LCNB Corporation | Eagle Financial vs. Affinity Bancshares |
| Pioneer Bancorp vs. Home Federal Bancorp | Pioneer Bancorp vs. Lake Shore Bancorp | Pioneer Bancorp vs. Community West Bancshares | Pioneer Bancorp vs. Magyar Bancorp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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