Correlation Between Wayne Savings and Enterprise Financial
Can any of the company-specific risk be diversified away by investing in both Wayne Savings and Enterprise 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 Wayne Savings and Enterprise Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wayne Savings Bancshares and Enterprise Financial Services, you can compare the effects of market volatilities on Wayne Savings and Enterprise 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 Wayne Savings with a short position of Enterprise Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wayne Savings and Enterprise Financial.
Diversification Opportunities for Wayne Savings and Enterprise Financial
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wayne and Enterprise is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Wayne Savings Bancshares and Enterprise Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enterprise Financial and Wayne Savings 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 Wayne Savings Bancshares are associated (or correlated) with Enterprise Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enterprise Financial has no effect on the direction of Wayne Savings i.e., Wayne Savings and Enterprise Financial go up and down completely randomly.
Pair Corralation between Wayne Savings and Enterprise Financial
Given the investment horizon of 90 days Wayne Savings Bancshares is expected to generate 1.0 times more return on investment than Enterprise Financial. However, Wayne Savings Bancshares is 1.0 times less risky than Enterprise Financial. It trades about 0.17 of its potential returns per unit of risk. Enterprise Financial Services is currently generating about 0.04 per unit of risk. If you would invest 2,645 in Wayne Savings Bancshares on August 28, 2024 and sell it today you would earn a total of 196.00 from holding Wayne Savings Bancshares or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.04% |
| Values | Daily Returns |
Wayne Savings Bancshares vs. Enterprise Financial Services
Performance |
| Timeline |
| Wayne Savings Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enterprise Financial |
Wayne Savings and Enterprise Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wayne Savings and Enterprise Financial
The main advantage of trading using opposite Wayne Savings and Enterprise Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wayne Savings position performs unexpectedly, Enterprise 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 Enterprise Financial will offset losses from the drop in Enterprise Financial's long position.| Wayne Savings vs. First IC | Wayne Savings vs. CCFNB Bancorp | Wayne Savings vs. Glen Burnie Bancorp | Wayne Savings vs. Main Street Financial |
| Enterprise Financial vs. Dime Community Bancshares | Enterprise Financial vs. Texas Capital Bancshares | Enterprise Financial vs. First Citizens BancShares | Enterprise Financial vs. CIT Group Preferred |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |