Correlation Between Esquire Financial and Ffbw
Can any of the company-specific risk be diversified away by investing in both Esquire Financial and Ffbw 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 Esquire Financial and Ffbw into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esquire Financial Holdings and Ffbw Inc, you can compare the effects of market volatilities on Esquire Financial and Ffbw 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 Esquire Financial with a short position of Ffbw. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esquire Financial and Ffbw.
Diversification Opportunities for Esquire Financial and Ffbw
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Esquire and Ffbw is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Esquire Financial Holdings and Ffbw Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ffbw Inc and Esquire 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 Esquire Financial Holdings are associated (or correlated) with Ffbw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ffbw Inc has no effect on the direction of Esquire Financial i.e., Esquire Financial and Ffbw go up and down completely randomly.
Pair Corralation between Esquire Financial and Ffbw
If you would invest 4,597 in Esquire Financial Holdings on January 26, 2024 and sell it today you would earn a total of 98.00 from holding Esquire Financial Holdings or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Esquire Financial Holdings vs. Ffbw Inc
Performance |
| Timeline |
| Esquire Financial |
| Ffbw Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Esquire Financial and Ffbw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esquire Financial and Ffbw
The main advantage of trading using opposite Esquire Financial and Ffbw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esquire Financial position performs unexpectedly, Ffbw 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 Ffbw will offset losses from the drop in Ffbw's long position.| Esquire Financial vs. HMN Financial | Esquire Financial vs. Home Federal Bancorp | Esquire Financial vs. First Financial Northwest | Esquire Financial vs. First Northwest Bancorp |
| Ffbw vs. Nmb Financial Corp | Ffbw vs. Hang Seng Bank | Ffbw vs. Southern BancShares NC | Ffbw vs. CCSB Financial Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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