Correlation Between Boeing and ENB Financial
Can any of the company-specific risk be diversified away by investing in both Boeing 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 Boeing and ENB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and ENB Financial Corp, you can compare the effects of market volatilities on Boeing 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 Boeing with a short position of ENB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and ENB Financial.
Diversification Opportunities for Boeing and ENB Financial
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boeing and ENB is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing 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 Boeing 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 The Boeing 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 Boeing i.e., Boeing and ENB Financial go up and down completely randomly.
Pair Corralation between Boeing and ENB Financial
Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the ENB Financial. But the stock apears to be less risky and, when comparing its historical volatility, The Boeing is 1.12 times less risky than ENB Financial. The stock trades about -0.03 of its potential returns per unit of risk. The ENB Financial Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,269 in ENB Financial Corp on January 7, 2025 and sell it today you would earn a total of 281.00 from holding ENB Financial Corp or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.98% |
| Values | Daily Returns |
The Boeing vs. ENB Financial Corp
Performance |
| Timeline |
| Boeing |
| ENB Financial Corp |
Boeing and ENB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and ENB Financial
The main advantage of trading using opposite Boeing and ENB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing 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.| Boeing vs. Raytheon Technologies Corp | Boeing vs. Northrop Grumman | Boeing vs. General Dynamics | Boeing vs. L3Harris Technologies |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |