Correlation Between Security National and Eagle Financial
Can any of the company-specific risk be diversified away by investing in both Security National 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 Security National and Eagle Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security National Financial and Eagle Financial Services, you can compare the effects of market volatilities on Security National 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 Security National with a short position of Eagle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security National and Eagle Financial.
Diversification Opportunities for Security National and Eagle Financial
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Security and Eagle is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Security National Financial 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 Security National 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 Security National 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 Services has no effect on the direction of Security National i.e., Security National and Eagle Financial go up and down completely randomly.
Pair Corralation between Security National and Eagle Financial
Assuming the 90 days horizon Security National Financial is expected to under-perform the Eagle Financial. In addition to that, Security National is 1.52 times more volatile than Eagle Financial Services. It trades about -0.09 of its total potential returns per unit of risk. Eagle Financial Services is currently generating about 0.04 per unit of volatility. If you would invest 3,439 in Eagle Financial Services on August 13, 2025 and sell it today you would earn a total of 114.00 from holding Eagle Financial Services or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Security National Financial vs. Eagle Financial Services
Performance |
| Timeline |
| Security National |
| Eagle Financial Services |
Security National and Eagle Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security National and Eagle Financial
The main advantage of trading using opposite Security National and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security National 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.| Security National vs. First Savings Financial | Security National vs. Greystone Housing Impact | Security National vs. OP Bancorp | Security National vs. Consumer Portfolio Services |
| Eagle Financial vs. National Bankshares | Eagle Financial vs. Chain Bridge Bancorp, | Eagle Financial vs. First Community | Eagle Financial vs. Franklin Financial Services |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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