Correlation Between Axos Financial and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both Axos Financial 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 Axos Financial and Eagle Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and Eagle Financial Bancorp, you can compare the effects of market volatilities on Axos Financial 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 Axos Financial with a short position of Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Eagle Financial.
Diversification Opportunities for Axos Financial and Eagle Financial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Axos and Eagle is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Axos 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 Axos 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 Axos 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 Axos Financial i.e., Axos Financial and Eagle Financial go up and down completely randomly.
Pair Corralation between Axos Financial and Eagle Financial
If you would invest 1,810 in Eagle Financial Bancorp on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Eagle Financial Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Axos Financial vs. Eagle Financial Bancorp
Performance |
| Timeline |
| Axos Financial |
| Eagle Financial Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Axos Financial and Eagle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and Eagle Financial
The main advantage of trading using opposite Axos Financial and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial 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.| Axos Financial vs. Home Federal Bancorp | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Financial Northwest | Axos Financial vs. First Northwest Bancorp |
| Eagle Financial vs. Enterprise Financial Services | Eagle Financial vs. TC Bancshares | Eagle Financial vs. Pioneer Bancorp | Eagle Financial vs. LCNB Corporation |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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