Correlation Between Eagle Financial and Enterprise Financial

Can any of the company-specific risk be diversified away by investing in both Eagle Financial and Enterprise 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 Enterprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eagle Financial Bancorp and Enterprise Financial Services, you can compare the effects of market volatilities on Eagle Financial and Enterprise 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 Enterprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Financial and Enterprise Financial.

Diversification Opportunities for Eagle Financial and Enterprise Financial

-0.17

Correlation Coefficient

Eagle Financial  Enterprise Financial

Good diversification

The 3 months correlation between Eagle and Enterprise is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Financial Bancorp and Enterprise Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enterprise Financial 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 Bancorp are associated (or correlated) with Enterprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enterprise Financial has no effect on the direction of Eagle Financial i.e., Eagle Financial and Enterprise Financial go up and down completely randomly.

Pair Corralation between Eagle Financial and Enterprise Financial

If you would invest  1,810  in Eagle Financial Bancorp on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Eagle Financial Bancorp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Eagle Financial Bancorp  vs.  Enterprise Financial Services

Eagle Financial Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eagle Financial Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, Eagle Financial is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Enterprise Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enterprise Financial Services has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Preferred Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Eagle Financial and Enterprise Financial

The main advantage of trading using opposite Eagle Financial and Enterprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Financial position performs unexpectedly, Enterprise 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 Enterprise Financial will offset losses from the drop in Enterprise Financial's long position.

The idea behind Eagle Financial Bancorp and Enterprise Financial Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..