Correlation Between Eagle Financial and Axos Financial
Can any of the company-specific risk be diversified away by investing in both Eagle Financial and Axos 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 Eagle Financial and Axos Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Financial Services and Axos Financial, you can compare the effects of market volatilities on Eagle Financial and Axos 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 Eagle Financial with a short position of Axos Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Financial and Axos Financial.
Diversification Opportunities for Eagle Financial and Axos Financial
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eagle and Axos is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Services and Axos Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axos Financial 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 Services are associated (or correlated) with Axos Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axos Financial has no effect on the direction of Eagle Financial i.e., Eagle Financial and Axos Financial go up and down completely randomly.
Pair Corralation between Eagle Financial and Axos Financial
Given the investment horizon of 90 days Eagle Financial Services is expected to under-perform the Axos Financial. But the otc stock apears to be less risky and, when comparing its historical volatility, Eagle Financial Services is 3.62 times less risky than Axos Financial. The otc stock trades about -0.08 of its potential returns per unit of risk. The Axos Financial is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,485 in Axos Financial on January 25, 2024 and sell it today you would earn a total of 1,797 from holding Axos Financial or generate 51.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Financial Services vs. Axos Financial
Performance |
| Timeline |
| Eagle Financial Services |
| Axos Financial |
Eagle Financial and Axos Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Financial and Axos Financial
The main advantage of trading using opposite Eagle Financial and Axos Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Financial position performs unexpectedly, Axos 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 Axos Financial will offset losses from the drop in Axos Financial's long position.| Eagle Financial vs. Stevia Nutra Corp | Eagle Financial vs. Regent Ventures | Eagle Financial vs. Element Global | Eagle Financial vs. Affiliated Resources Corp |
| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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