Correlation Between Capital Properties and ENB Financial
Can any of the company-specific risk be diversified away by investing in both Capital Properties 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 Capital Properties and ENB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Properties and ENB Financial Corp, you can compare the effects of market volatilities on Capital Properties 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 Capital Properties with a short position of ENB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Properties and ENB Financial.
Diversification Opportunities for Capital Properties and ENB Financial
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capital and ENB is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Capital Properties 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 Capital Properties 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 Capital Properties 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 Capital Properties i.e., Capital Properties and ENB Financial go up and down completely randomly.
Pair Corralation between Capital Properties and ENB Financial
If you would invest 1,720 in ENB Financial Corp on November 1, 2024 and sell it today you would earn a total of 0.00 from holding ENB Financial Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Capital Properties vs. ENB Financial Corp
Performance |
| Timeline |
| Capital Properties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ENB Financial Corp |
Capital Properties and ENB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Properties and ENB Financial
The main advantage of trading using opposite Capital Properties and ENB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Properties 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.| Capital Properties vs. Community Bancorp | Capital Properties vs. F M Bank | Capital Properties vs. ENB Financial Corp | Capital Properties vs. CreditRiskMonitorCom |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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