Correlation Between Susquehanna Community and ENB Financial
Can any of the company-specific risk be diversified away by investing in both Susquehanna Community 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 Susquehanna Community and ENB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Susquehanna Community Financial and ENB Financial Corp, you can compare the effects of market volatilities on Susquehanna Community 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 Susquehanna Community with a short position of ENB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susquehanna Community and ENB Financial.
Diversification Opportunities for Susquehanna Community and ENB Financial
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Susquehanna and ENB is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Susquehanna Community Financia 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 Susquehanna Community 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 Susquehanna Community Financial 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 Susquehanna Community i.e., Susquehanna Community and ENB Financial go up and down completely randomly.
Pair Corralation between Susquehanna Community and ENB Financial
Given the investment horizon of 90 days Susquehanna Community is expected to generate 2.11 times less return on investment than ENB Financial. In addition to that, Susquehanna Community is 1.44 times more volatile than ENB Financial Corp. It trades about 0.02 of its total potential returns per unit of risk. ENB Financial Corp is currently generating about 0.05 per unit of volatility. If you would invest 1,380 in ENB Financial Corp on August 29, 2024 and sell it today you would earn a total of 445.00 from holding ENB Financial Corp or generate 32.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.17% |
| Values | Daily Returns |
Susquehanna Community Financia vs. ENB Financial Corp
Performance |
| Timeline |
| Susquehanna Community |
| ENB Financial Corp |
Susquehanna Community and ENB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susquehanna Community and ENB Financial
The main advantage of trading using opposite Susquehanna Community and ENB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susquehanna Community 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.| Susquehanna Community vs. CCFNB Bancorp | Susquehanna Community vs. Mifflinburg Bancorp | Susquehanna Community vs. Woodlands Financial Services | Susquehanna Community vs. Penns Woods Bancorp |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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