Correlation Between Axos Financial and Flushing Financial
Can any of the company-specific risk be diversified away by investing in both Axos Financial and Flushing 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 Flushing 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 Flushing Financial, you can compare the effects of market volatilities on Axos Financial and Flushing 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 Flushing Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Flushing Financial.
Diversification Opportunities for Axos Financial and Flushing Financial
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axos and Flushing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and Flushing Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flushing Financial 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 Flushing Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flushing Financial has no effect on the direction of Axos Financial i.e., Axos Financial and Flushing Financial go up and down completely randomly.
Pair Corralation between Axos Financial and Flushing Financial
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 0.58 times more return on investment than Flushing Financial. However, Axos Financial is 1.72 times less risky than Flushing Financial. It trades about 0.05 of its potential returns per unit of risk. Flushing Financial is currently generating about 0.01 per unit of risk. If you would invest 5,200 in Axos Financial on January 26, 2024 and sell it today you would earn a total of 82.00 from holding Axos Financial or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. Flushing Financial
Performance |
| Timeline |
| Axos Financial |
| Flushing Financial |
Axos Financial and Flushing Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and Flushing Financial
The main advantage of trading using opposite Axos Financial and Flushing Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, Flushing 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 Flushing Financial will offset losses from the drop in Flushing Financial's long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| Flushing Financial vs. Independent Bank | Flushing Financial vs. First Financial Bancorp | Flushing Financial vs. Lakeland Financial | Flushing Financial vs. National Bank Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |