Correlation Between Eagle Financial and TC Bancshares
Can any of the company-specific risk be diversified away by investing in both Eagle Financial and TC Bancshares 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 TC Bancshares 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 TC Bancshares, you can compare the effects of market volatilities on Eagle Financial and TC Bancshares 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 TC Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Financial and TC Bancshares.
Diversification Opportunities for Eagle Financial and TC Bancshares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and TCBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Bancorp and TC Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Bancshares 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 TC Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Bancshares has no effect on the direction of Eagle Financial i.e., Eagle Financial and TC Bancshares go up and down completely randomly.
Pair Corralation between Eagle Financial and TC Bancshares
If you would invest (100.00) in TC Bancshares on November 18, 2024 and sell it today you would earn a total of 100.00 from holding TC Bancshares or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Financial Bancorp vs. TC Bancshares
Performance |
| Timeline |
| Eagle Financial Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| TC Bancshares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Eagle Financial and TC Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Financial and TC Bancshares
The main advantage of trading using opposite Eagle Financial and TC Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Financial position performs unexpectedly, TC Bancshares 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 TC Bancshares will offset losses from the drop in TC Bancshares' long position.| Eagle Financial vs. Enterprise Financial Services | Eagle Financial vs. Pioneer Bancorp | Eagle Financial vs. LCNB Corporation | Eagle Financial vs. Affinity Bancshares |
| TC Bancshares vs. Home Federal Bancorp | TC Bancshares vs. Lake Shore Bancorp | TC Bancshares vs. Community West Bancshares | TC Bancshares vs. First Financial Northwest |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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