Correlation Between Enterprise Bancorp and Meridian Bancorp
Can any of the company-specific risk be diversified away by investing in both Enterprise Bancorp and Meridian Bancorp 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 Enterprise Bancorp and Meridian Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enterprise Bancorp and Meridian Bancorp, you can compare the effects of market volatilities on Enterprise Bancorp and Meridian Bancorp 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 Enterprise Bancorp with a short position of Meridian Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enterprise Bancorp and Meridian Bancorp.
Diversification Opportunities for Enterprise Bancorp and Meridian Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enterprise and Meridian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enterprise Bancorp and Meridian Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Bancorp and Enterprise Bancorp 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 Enterprise Bancorp are associated (or correlated) with Meridian Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Bancorp has no effect on the direction of Enterprise Bancorp i.e., Enterprise Bancorp and Meridian Bancorp go up and down completely randomly.
Pair Corralation between Enterprise Bancorp and Meridian Bancorp
If you would invest (100.00) in Meridian Bancorp on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Meridian Bancorp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Enterprise Bancorp vs. Meridian Bancorp
Performance |
| Timeline |
| Enterprise Bancorp |
| Meridian Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enterprise Bancorp and Meridian Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enterprise Bancorp and Meridian Bancorp
The main advantage of trading using opposite Enterprise Bancorp and Meridian Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enterprise Bancorp position performs unexpectedly, Meridian Bancorp 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 Meridian Bancorp will offset losses from the drop in Meridian Bancorp's long position.| Enterprise Bancorp vs. HMN Financial | Enterprise Bancorp vs. Lake Shore Bancorp | Enterprise Bancorp vs. Rhinebeck Bancorp |
| Meridian Bancorp vs. Simon Property Group | Meridian Bancorp vs. Aegon NV ADR | Meridian Bancorp vs. MGIC Investment Corp | Meridian Bancorp vs. Olympic Steel |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| 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 | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |