Correlation Between Oconee Federal and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both Oconee Federal 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 Oconee Federal and Eagle Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oconee Federal Financial and Eagle Financial Bancorp, you can compare the effects of market volatilities on Oconee Federal 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 Oconee Federal with a short position of Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oconee Federal and Eagle Financial.
Diversification Opportunities for Oconee Federal and Eagle Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oconee and Eagle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oconee Federal Financial and Eagle Financial Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Bancorp and Oconee Federal 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 Oconee Federal Financial 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 Bancorp has no effect on the direction of Oconee Federal i.e., Oconee Federal and Eagle Financial go up and down completely randomly.
Pair Corralation between Oconee Federal and Eagle Financial
If you would invest (100.00) in Eagle Financial Bancorp on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Eagle Financial Bancorp 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 |
Oconee Federal Financial vs. Eagle Financial Bancorp
Performance |
| Timeline |
| Oconee Federal Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Eagle Financial Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Oconee Federal and Eagle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oconee Federal and Eagle Financial
The main advantage of trading using opposite Oconee Federal and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oconee Federal 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.| Oconee Federal vs. Home Federal Bancorp | Oconee Federal vs. Community West Bancshares | Oconee Federal vs. Magyar Bancorp |
| Eagle Financial vs. Enterprise Financial Services | Eagle Financial vs. Pioneer Bancorp | Eagle Financial vs. LCNB Corporation | Eagle Financial vs. Affinity Bancshares |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |