Correlation Between Axos Financial and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both Axos Financial 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 Axos Financial and Eagle Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and Eagle Financial Bancorp, you can compare the effects of market volatilities on Axos Financial 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 Axos Financial with a short position of Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Eagle Financial.
Diversification Opportunities for Axos Financial and Eagle Financial
0.28 | Correlation Coefficient |
Modest diversification
The 12 months correlation between Axos and Eagle is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and Eagle Financial Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Bancorp and Axos 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 Axos 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 Bancorp has no effect on the direction of Axos Financial i.e., Axos Financial and Eagle Financial go up and down completely randomly.
Pair Corralation between Axos Financial and Eagle Financial
If you would invest 3,989 in Axos Financial on December 29, 2023 and sell it today you would earn a total of 1,348 from holding Axos Financial or generate 33.79% return on investment over 90 days.
Time Period | 12 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 0.54% |
Values | Daily Returns |
Axos Financial vs. Eagle Financial Bancorp
Performance |
Timeline |
Axos Financial |
Eagle Financial Bancorp |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Axos Financial and Eagle Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Axos Financial and Eagle Financial
The main advantage of trading using opposite Axos Financial and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial 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.Axos Financial vs. Middlefield Banc | Axos Financial vs. Merchants Bancorp | Axos Financial vs. Mercantile Bank | Axos Financial vs. MetroCity Bankshares |
Eagle Financial vs. Natural Alternatives International | Eagle Financial vs. Marfrig Global Foods | Eagle Financial vs. Copa Holdings SA | Eagle Financial vs. Nok Airlines Public |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |