Correlation Between Bank of Idaho and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both Bank of Idaho 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 Bank of Idaho and Eagle Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Idaho and Eagle Financial Services, you can compare the effects of market volatilities on Bank of Idaho 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 Bank of Idaho with a short position of Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Idaho and Eagle Financial.
Diversification Opportunities for Bank of Idaho and Eagle Financial
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Eagle is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Idaho 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 Bank of Idaho 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 Bank of Idaho 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 Bank of Idaho i.e., Bank of Idaho and Eagle Financial go up and down completely randomly.
Pair Corralation between Bank of Idaho and Eagle Financial
Given the investment horizon of 90 days Bank of Idaho is expected to generate 1.16 times more return on investment than Eagle Financial. However, Bank of Idaho is 1.16 times more volatile than Eagle Financial Services. It trades about 0.01 of its potential returns per unit of risk. Eagle Financial Services is currently generating about -0.4 per unit of risk. If you would invest 5,050 in Bank of Idaho on December 4, 2024 and sell it today you would earn a total of 10.00 from holding Bank of Idaho or generate 0.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
Bank of Idaho vs. Eagle Financial Services
Performance |
Timeline |
Bank of Idaho |
Eagle Financial Services |
Bank of Idaho and Eagle Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Idaho and Eagle Financial
The main advantage of trading using opposite Bank of Idaho and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Idaho 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.Bank of Idaho vs. National Capital Bank | Bank of Idaho vs. Citizens Financial Corp | Bank of Idaho vs. Community Heritage Financial | Bank of Idaho vs. Lewis Clark Bancorp |
Eagle Financial vs. Chesapeake Finl Shs | Eagle Financial vs. PSB Holdings | Eagle Financial vs. Farmers Merchants Bancorp | Eagle Financial vs. First Financial |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |