Correlation Between CIT and Eagle Bancorp
Can any of the company-specific risk be diversified away by investing in both CIT and Eagle Bancorp 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 CIT and Eagle Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIT Group and Eagle Bancorp Montana, you can compare the effects of market volatilities on CIT and Eagle Bancorp 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 CIT with a short position of Eagle Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIT and Eagle Bancorp.
Diversification Opportunities for CIT and Eagle Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIT and Eagle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIT Group and Eagle Bancorp Montana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Bancorp Montana and CIT 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 CIT Group are associated (or correlated) with Eagle Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Bancorp Montana has no effect on the direction of CIT i.e., CIT and Eagle Bancorp go up and down completely randomly.
Pair Corralation between CIT and Eagle Bancorp
If you would invest 1,300 in Eagle Bancorp Montana on January 26, 2024 and sell it today you would lose (14.00) from holding Eagle Bancorp Montana or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CIT Group vs. Eagle Bancorp Montana
Performance |
| Timeline |
| CIT Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eagle Bancorp Montana |
CIT and Eagle Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIT and Eagle Bancorp
The main advantage of trading using opposite CIT and Eagle Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIT position performs unexpectedly, Eagle Bancorp 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 Bancorp will offset losses from the drop in Eagle Bancorp's long position.| CIT vs. Encore Capital Group | CIT vs. Commonwealth Bank of | CIT vs. Siriuspoint | CIT vs. Univest Pennsylvania |
| Eagle Bancorp vs. HMN Financial | Eagle Bancorp vs. Home Federal Bancorp | Eagle Bancorp vs. First Financial Northwest | Eagle Bancorp vs. First Northwest Bancorp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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