Correlation Between Allspring Utilities and ENB Financial

Can any of the company-specific risk be diversified away by investing in both Allspring Utilities 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 Allspring Utilities and ENB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allspring Utilities And and ENB Financial Corp, you can compare the effects of market volatilities on Allspring Utilities 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 Allspring Utilities with a short position of ENB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allspring Utilities and ENB Financial.

Diversification Opportunities for Allspring Utilities and ENB Financial

-0.02

Correlation Coefficient

Allspring Utilities  ENB Financial

Good diversification

The 3 months correlation between Allspring and ENB is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Allspring Utilities And 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 Allspring Utilities 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 Allspring Utilities And 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 Allspring Utilities i.e., Allspring Utilities and ENB Financial go up and down completely randomly.

Pair Corralation between Allspring Utilities and ENB Financial

Considering the 90-day investment horizon Allspring Utilities And is expected to generate 0.55 times more return on investment than ENB Financial. However, Allspring Utilities And is 1.8 times less risky than ENB Financial. It trades about 0.24 of its potential returns per unit of risk. ENB Financial Corp is currently generating about -0.02 per unit of risk. If you would invest  918.00  in Allspring Utilities And on February 5, 2024 and sell it today you would earn a total of  48.00  from holding Allspring Utilities And or generate 5.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Allspring Utilities And  vs.  ENB Financial Corp

Allspring Utilities And

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Allspring Utilities And are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. Despite fairly uncertain basic indicators, Allspring Utilities may actually be approaching a critical reversion point that can send shares even higher in June 2024.

ENB Financial Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ENB Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, ENB Financial is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Allspring Utilities and ENB Financial

The main advantage of trading using opposite Allspring Utilities and ENB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allspring Utilities 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.

The idea behind Allspring Utilities And and ENB Financial Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.