Correlation Between Eagle Point and First Interstate

Can any of the company-specific risk be diversified away by investing in both Eagle Point and First Interstate 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 Point and First Interstate into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eagle Point Credit and First Interstate BancSystem, you can compare the effects of market volatilities on Eagle Point and First Interstate 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 Point with a short position of First Interstate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and First Interstate.

Diversification Opportunities for Eagle Point and First Interstate

0.38

Correlation Coefficient

Eagle Point  First Interstate

Weak diversification

The 3 months correlation between Eagle and First is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and First Interstate BancSystem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Interstate Ban and Eagle Point 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 Point Credit are associated (or correlated) with First Interstate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Interstate Ban has no effect on the direction of Eagle Point i.e., Eagle Point and First Interstate go up and down completely randomly.

Pair Corralation between Eagle Point and First Interstate

Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the First Interstate. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Point Credit is 1.07 times less risky than First Interstate. The stock trades about -0.05 of its potential returns per unit of risk. The First Interstate BancSystem is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,989  in First Interstate BancSystem on August 16, 2025 and sell it today you would earn a total of  256.00  from holding First Interstate BancSystem or generate 8.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Eagle Point Credit  vs.  First Interstate BancSystem

Eagle Point Credit

Risk-Adjusted Performance

Weakest

Over the last 90 days Eagle Point Credit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Eagle Point is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

First Interstate Ban

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in First Interstate BancSystem are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain fundamental drivers, First Interstate may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Eagle Point and First Interstate

The main advantage of trading using opposite Eagle Point and First Interstate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, First Interstate 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 First Interstate will offset losses from the drop in First Interstate's long position.

The idea behind Eagle Point Credit and First Interstate BancSystem pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.