Correlation Between ENB Financial and Capital Properties
Can any of the company-specific risk be diversified away by investing in both ENB Financial and Capital Properties 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 ENB Financial and Capital Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENB Financial Corp and Capital Properties, you can compare the effects of market volatilities on ENB Financial and Capital Properties 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 ENB Financial with a short position of Capital Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENB Financial and Capital Properties.
Diversification Opportunities for ENB Financial and Capital Properties
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ENB and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ENB Financial Corp and Capital Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Properties and ENB 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 ENB Financial Corp are associated (or correlated) with Capital Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Properties has no effect on the direction of ENB Financial i.e., ENB Financial and Capital Properties go up and down completely randomly.
Pair Corralation between ENB Financial and Capital Properties
If you would invest 1,389 in ENB Financial Corp on November 9, 2024 and sell it today you would earn a total of 351.00 from holding ENB Financial Corp or generate 25.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ENB Financial Corp vs. Capital Properties
Performance |
| Timeline |
| ENB Financial Corp |
| Capital Properties |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ENB Financial and Capital Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENB Financial and Capital Properties
The main advantage of trading using opposite ENB Financial and Capital Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENB Financial position performs unexpectedly, Capital Properties 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 Capital Properties will offset losses from the drop in Capital Properties' long position.| ENB Financial vs. Potomac Bancshares | ENB Financial vs. Apollo Bancorp | ENB Financial vs. The Farmers Bank | ENB Financial vs. 1ST SUMMIT BANCORP |
| Capital Properties vs. Community Bancorp | Capital Properties vs. F M Bank | Capital Properties vs. ENB Financial Corp | Capital Properties vs. CreditRiskMonitorCom |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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