Correlation Between Traditions Bank and ENB Financial
Can any of the company-specific risk be diversified away by investing in both Traditions Bank and ENB 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 Traditions Bank and ENB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Traditions Bank and ENB Financial Corp, you can compare the effects of market volatilities on Traditions Bank and ENB 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 Traditions Bank with a short position of ENB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Traditions Bank and ENB Financial.
Diversification Opportunities for Traditions Bank and ENB Financial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Traditions and ENB is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Traditions Bank and ENB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENB Financial Corp and Traditions Bank 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 Traditions Bank are associated (or correlated) with ENB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENB Financial Corp has no effect on the direction of Traditions Bank i.e., Traditions Bank and ENB Financial go up and down completely randomly.
Pair Corralation between Traditions Bank and ENB Financial
If you would invest (100.00) in Traditions Bank on December 28, 2024 and sell it today you would earn a total of 100.00 from holding Traditions Bank or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 0.0% |
Values | Daily Returns |
Traditions Bank vs. ENB Financial Corp
Performance |
Timeline |
Traditions Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ENB Financial Corp |
Traditions Bank and ENB Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Traditions Bank and ENB Financial
The main advantage of trading using opposite Traditions Bank and ENB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Traditions Bank position performs unexpectedly, ENB 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 ENB Financial will offset losses from the drop in ENB Financial's long position.Traditions Bank vs. Franklin Financial Services | Traditions Bank vs. ENB Financial Corp | Traditions Bank vs. Community Heritage Financial | Traditions Bank vs. Potomac Bancshares |
ENB Financial vs. Potomac Bancshares | ENB Financial vs. Apollo Bancorp | ENB Financial vs. The Farmers Bank | ENB Financial vs. 1ST SUMMIT 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |