Correlation Between ESSA Bancorp and Premier Financial
Can any of the company-specific risk be diversified away by investing in both ESSA Bancorp and Premier 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 ESSA Bancorp and Premier Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESSA Bancorp and Premier Financial Corp, you can compare the effects of market volatilities on ESSA Bancorp and Premier 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 ESSA Bancorp with a short position of Premier Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESSA Bancorp and Premier Financial.
Diversification Opportunities for ESSA Bancorp and Premier Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ESSA and Premier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ESSA Bancorp and Premier Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Financial Corp and ESSA Bancorp 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 ESSA Bancorp are associated (or correlated) with Premier Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Financial Corp has no effect on the direction of ESSA Bancorp i.e., ESSA Bancorp and Premier Financial go up and down completely randomly.
Pair Corralation between ESSA Bancorp and Premier Financial
If you would invest 1,478 in ESSA Bancorp on February 4, 2024 and sell it today you would earn a total of 242.00 from holding ESSA Bancorp or generate 16.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
ESSA Bancorp vs. Premier Financial Corp
Performance |
Timeline |
ESSA Bancorp |
Premier Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ESSA Bancorp and Premier Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ESSA Bancorp and Premier Financial
The main advantage of trading using opposite ESSA Bancorp and Premier Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESSA Bancorp position performs unexpectedly, Premier 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 Premier Financial will offset losses from the drop in Premier Financial's long position.ESSA Bancorp vs. Community West Bancshares | ESSA Bancorp vs. HMN Financial | ESSA Bancorp vs. First Northwest Bancorp | ESSA Bancorp vs. Cullman Bancorp |
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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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