Correlation Between Enova International and Medallion Financial
Can any of the company-specific risk be diversified away by investing in both Enova International and Medallion 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 Enova International and Medallion Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enova International and Medallion Financial Corp, you can compare the effects of market volatilities on Enova International and Medallion 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 Enova International with a short position of Medallion Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enova International and Medallion Financial.
Diversification Opportunities for Enova International and Medallion Financial
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enova and Medallion is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Enova International and Medallion Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medallion Financial Corp and Enova International 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 Enova International are associated (or correlated) with Medallion Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medallion Financial Corp has no effect on the direction of Enova International i.e., Enova International and Medallion Financial go up and down completely randomly.
Pair Corralation between Enova International and Medallion Financial
Given the investment horizon of 90 days Enova International is expected to under-perform the Medallion Financial. But the stock apears to be less risky and, when comparing its historical volatility, Enova International is 1.36 times less risky than Medallion Financial. The stock trades about -0.69 of its potential returns per unit of risk. The Medallion Financial Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 871.00 in Medallion Financial Corp on December 10, 2024 and sell it today you would earn a total of 25.00 from holding Medallion Financial Corp or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enova International vs. Medallion Financial Corp
Performance |
| Timeline |
| Enova International |
| Medallion Financial Corp |
Enova International and Medallion Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enova International and Medallion Financial
The main advantage of trading using opposite Enova International and Medallion Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enova International position performs unexpectedly, Medallion 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 Medallion Financial will offset losses from the drop in Medallion Financial's long position.| Enova International vs. Regional Management Corp | ||
| Enova International vs. Encore Capital Group | ||
| Enova International vs. Customers Bancorp | ||
| Enova International vs. Employers Holdings |
| Medallion Financial vs. Midland States Bancorp | ||
| Medallion Financial vs. Western New England | ||
| Medallion Financial vs. Merchants Bancorp | ||
| Medallion Financial vs. MidWestOne Financial Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |