Correlation Between Enterprise Financial and Eagle Financial

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

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

Diversification Opportunities for Enterprise Financial and Eagle Financial

0.0

Correlation Coefficient

Enterprise Financial  Eagle Financial

Pay attention - limited upside

The 3 months correlation between Enterprise and Eagle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enterprise Financial Services and Eagle Financial Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Financial Bancorp and Enterprise 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 Enterprise Financial Services 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 Bancorp has no effect on the direction of Enterprise Financial i.e., Enterprise Financial and Eagle Financial go up and down completely randomly.

Pair Corralation between Enterprise Financial and Eagle Financial

If you would invest  1,810  in Eagle Financial Bancorp on October 24, 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	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Enterprise Financial Services  vs.  Eagle Financial Bancorp

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.

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.

Pair Trading with Enterprise Financial and Eagle Financial

The main advantage of trading using opposite Enterprise Financial and Eagle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enterprise Financial 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.

The idea behind Enterprise Financial Services and Eagle Financial Bancorp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.