Correlation Between Esquire Financial and LINKBANCORP

Can any of the company-specific risk be diversified away by investing in both Esquire Financial and LINKBANCORP 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 LINKBANCORP 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 LINKBANCORP, you can compare the effects of market volatilities on Esquire Financial and LINKBANCORP 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 LINKBANCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esquire Financial and LINKBANCORP.

Diversification Opportunities for Esquire Financial and LINKBANCORP

0.57

Correlation Coefficient

Esquire Financial  LINKBANCORP

Very weak diversification

The 3 months correlation between Esquire and LINKBANCORP is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Esquire Financial Holdings and LINKBANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINKBANCORP 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 LINKBANCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINKBANCORP has no effect on the direction of Esquire Financial i.e., Esquire Financial and LINKBANCORP go up and down completely randomly.

Pair Corralation between Esquire Financial and LINKBANCORP

Considering the 90-day investment horizon Esquire Financial Holdings is expected to generate 0.9 times more return on investment than LINKBANCORP. However, Esquire Financial Holdings is 1.11 times less risky than LINKBANCORP. It trades about 0.13 of its potential returns per unit of risk. LINKBANCORP is currently generating about 0.03 per unit of risk. If you would invest  4,593  in Esquire Financial Holdings on July 16, 2025 and sell it today you would earn a total of  5,803  from holding Esquire Financial Holdings or generate 126.34% return on investment over 90 days.

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

Esquire Financial Holdings  vs.  LINKBANCORP

Esquire Financial

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Esquire Financial Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Esquire Financial may actually be approaching a critical reversion point that can send shares even higher in November 2025.

LINKBANCORP

Risk-Adjusted Performance

Weakest

Over the last 90 days LINKBANCORP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, LINKBANCORP is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Esquire Financial and LINKBANCORP

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

The idea behind Esquire Financial Holdings and LINKBANCORP 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.

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.