Correlation Between Eagle Financial and Medallion Financial
Can any of the company-specific risk be diversified away by investing in both Eagle Financial and Medallion 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 Eagle Financial and Medallion Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Financial Services and Medallion Financial Corp, you can compare the effects of market volatilities on Eagle Financial and Medallion 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 Eagle Financial with a short position of Medallion Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Financial and Medallion Financial.
Diversification Opportunities for Eagle Financial and Medallion Financial
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and Medallion is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Services and Medallion Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medallion Financial Corp and Eagle 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 Eagle Financial Services are associated (or correlated) with Medallion Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medallion Financial Corp has no effect on the direction of Eagle Financial i.e., Eagle Financial and Medallion Financial go up and down completely randomly.
Pair Corralation between Eagle Financial and Medallion Financial
Given the investment horizon of 90 days Eagle Financial Services is expected to generate 0.68 times more return on investment than Medallion Financial. However, Eagle Financial Services is 1.47 times less risky than Medallion Financial. It trades about 0.05 of its potential returns per unit of risk. Medallion Financial Corp is currently generating about -0.01 per unit of risk. If you would invest 3,461 in Eagle Financial Services on August 18, 2025 and sell it today you would earn a total of 149.00 from holding Eagle Financial Services or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Financial Services vs. Medallion Financial Corp
Performance |
| Timeline |
| Eagle Financial Services |
| Medallion Financial Corp |
Eagle Financial and Medallion Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Financial and Medallion Financial
The main advantage of trading using opposite Eagle Financial and Medallion Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Financial position performs unexpectedly, Medallion 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 Medallion Financial will offset losses from the drop in Medallion Financial's long position.| Eagle Financial vs. National Bankshares | Eagle Financial vs. Chain Bridge Bancorp, | Eagle Financial vs. First Community | Eagle Financial vs. Franklin Financial Services |
| Medallion Financial vs. Yirendai | Medallion Financial vs. Finance of America | Medallion Financial vs. Open Lending Corp | Medallion Financial vs. Oportun Financial Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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