Correlation Analysis Between Axos Financial and Enterprise Bancorp

Analyzing existing cross correlation between Axos Financial and Enterprise Bancorp. You can compare the effects of market volatilities on Axos Financial and Enterprise 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 Axos Financial with a short position of Enterprise Bancorp. See also your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Enterprise Bancorp.
Horizon     30 Days    Login   to change
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Comparative Performance

Axos Financial  
00

Risk-Adjusted Performance

Over the last 30 days Axos Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Enterprise Bancorp  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Enterprise Bancorp are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Enterprise Bancorp may actually be approaching a critical reversion point that can send shares even higher in February 2020.

Axos Financial and Enterprise Bancorp Volatility Contrast

 Predicted Return Density 
    
  Returns 

Axos Financial Inc  vs.  Enterprise Bancorp Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Axos Financial is expected to under-perform the Enterprise Bancorp. In addition to that, Axos Financial is 1.49 times more volatile than Enterprise Bancorp. It trades about -0.07 of its total potential returns per unit of risk. Enterprise Bancorp is currently generating about 0.08 per unit of volatility. If you would invest  3,014  in Enterprise Bancorp on December 28, 2019 and sell it today you would earn a total of  202.00  from holding Enterprise Bancorp or generate 6.7% return on investment over 30 days.

Pair Corralation between Axos Financial and Enterprise Bancorp

0.27
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy96.88%
ValuesDaily Returns

Diversification Opportunities for Axos Financial and Enterprise Bancorp

Axos Financial Inc diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial Inc and Enterprise Bancorp Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Enterprise Bancorp and Axos Financial 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 Axos Financial are associated (or correlated) with Enterprise Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enterprise Bancorp has no effect on the direction of Axos Financial i.e. Axos Financial and Enterprise Bancorp go up and down completely randomly.
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