Correlation Between Enterprise Financial and Onity

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

By analyzing existing cross correlation between Enterprise Financial Services and Onity Group, you can compare the effects of market volatilities on Enterprise Financial and Onity 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 Financial with a short position of Onity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enterprise Financial and Onity.

Diversification Opportunities for Enterprise Financial and Onity

0.29

Correlation Coefficient

Enterprise Financial  Onity

Modest diversification

The 3 months correlation between Enterprise and Onity is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Enterprise Financial Services and Onity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onity Group and Enterprise 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 Enterprise Financial Services are associated (or correlated) with Onity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onity Group has no effect on the direction of Enterprise Financial i.e., Enterprise Financial and Onity go up and down completely randomly.

Pair Corralation between Enterprise Financial and Onity

Given the investment horizon of 90 days Enterprise Financial Services is expected to under-perform the Onity. But the stock apears to be less risky and, when comparing its historical volatility, Enterprise Financial Services is 1.42 times less risky than Onity. The stock trades about -0.03 of its potential returns per unit of risk. The Onity Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  4,406  in Onity Group on September 13, 2025 and sell it today you would earn a total of  47.00  from holding Onity Group or generate 1.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Enterprise Financial Services  vs.  Onity Group

Enterprise Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Enterprise Financial Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Enterprise Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Onity Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Onity Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Onity is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Enterprise Financial and Onity

The main advantage of trading using opposite Enterprise Financial and Onity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enterprise Financial position performs unexpectedly, Onity 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 Onity will offset losses from the drop in Onity's long position.

The idea behind Enterprise Financial Services and Onity Group 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.