Correlation Between First Savings and Eagle Financial

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

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

Diversification Opportunities for First Savings and Eagle Financial

0.28

Correlation Coefficient

First Savings  Eagle Financial

Modest diversification

The 3 months correlation between First and Eagle is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding First Savings Financial and Eagle Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Services and First Savings 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 First Savings Financial are associated (or correlated) with Eagle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Financial Services has no effect on the direction of First Savings i.e., First Savings and Eagle Financial go up and down completely randomly.

Pair Corralation between First Savings and Eagle Financial

Given the investment horizon of 90 days First Savings Financial is expected to generate 1.94 times more return on investment than Eagle Financial. However, First Savings is 1.94 times more volatile than Eagle Financial Services. It trades about 0.08 of its potential returns per unit of risk. Eagle Financial Services is currently generating about 0.06 per unit of risk. If you would invest  2,656  in First Savings Financial on August 15, 2025 and sell it today you would earn a total of  321.00  from holding First Savings Financial or generate 12.09% return on investment over 90 days.

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

First Savings Financial  vs.  Eagle Financial Services

First Savings Financial

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in First Savings Financial are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, First Savings reported solid returns over the last few months and may actually be approaching a breakup point.

Eagle Financial Services

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Financial Services are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Eagle Financial is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with First Savings and Eagle Financial

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

The idea behind First Savings Financial and Eagle Financial Services 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.