Correlation Between Logan Ridge and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both Logan Ridge and Eagle 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 Logan Ridge and Eagle Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Eagle Financial Services, you can compare the effects of market volatilities on Logan Ridge and Eagle 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 Logan Ridge with a short position of Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Eagle Financial.
Diversification Opportunities for Logan Ridge and Eagle Financial
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Logan and Eagle is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and Eagle Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Services and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with Eagle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Financial Services has no effect on the direction of Logan Ridge i.e., Logan Ridge and Eagle Financial go up and down completely randomly.
Pair Corralation between Logan Ridge and Eagle Financial
Given the investment horizon of 90 days Logan Ridge is expected to generate 11.99 times less return on investment than Eagle Financial. In addition to that, Logan Ridge is 1.16 times more volatile than Eagle Financial Services. It trades about 0.03 of its total potential returns per unit of risk. Eagle Financial Services is currently generating about 0.39 per unit of volatility. If you would invest 3,243 in Eagle Financial Services on September 4, 2024 and sell it today you would earn a total of 307.00 from holding Eagle Financial Services or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Logan Ridge Finance vs. Eagle Financial Services
Performance |
| Timeline |
| Logan Ridge Finance |
| Eagle Financial Services |
Logan Ridge and Eagle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Eagle Financial
The main advantage of trading using opposite Logan Ridge and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge position performs unexpectedly, Eagle 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 Eagle Financial will offset losses from the drop in Eagle Financial's long position.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| Eagle Financial vs. Chesapeake Finl Shs | Eagle Financial vs. Taylor Calvin B | Eagle Financial vs. PSB Holdings | Eagle Financial vs. Farmers Merchants 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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