Correlation Between Eagle Bancorp and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Eagle Bancorp and Lloyds Banking 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 Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Bancorp and Lloyds Banking Group, you can compare the effects of market volatilities on Eagle Bancorp and Lloyds Banking 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 Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bancorp and Lloyds Banking.
Diversification Opportunities for Eagle Bancorp and Lloyds Banking
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eagle and Lloyds is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bancorp and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group 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 are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Eagle Bancorp i.e., Eagle Bancorp and Lloyds Banking go up and down completely randomly.
Pair Corralation between Eagle Bancorp and Lloyds Banking
Given the investment horizon of 90 days Eagle Bancorp is expected to under-perform the Lloyds Banking. In addition to that, Eagle Bancorp is 1.78 times more volatile than Lloyds Banking Group. It trades about 0.0 of its total potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.04 per unit of volatility. If you would invest 201.00 in Lloyds Banking Group on August 27, 2024 and sell it today you would earn a total of 72.00 from holding Lloyds Banking Group or generate 35.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Bancorp vs. Lloyds Banking Group
Performance |
| Timeline |
| Eagle Bancorp |
| Lloyds Banking Group |
Eagle Bancorp and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bancorp and Lloyds Banking
The main advantage of trading using opposite Eagle Bancorp and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bancorp position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| Eagle Bancorp vs. Fifth Third Bancorp | Eagle Bancorp vs. Zions Bancorporation | Eagle Bancorp vs. Huntington Bancshares Incorporated | Eagle Bancorp vs. PNC Financial Services |
| Lloyds Banking vs. Itau Unibanco Banco | Lloyds Banking vs. Grupo Financiero Galicia | Lloyds Banking vs. Banco Macro SA | Lloyds Banking vs. Banco Santander Brasil |
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.
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