Correlation Between La Franaise and ENTERPRISE

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

By analyzing existing cross correlation between La Franaise des and ENTERPRISE PRODUCTS OPERATING, you can compare the effects of market volatilities on La Franaise and ENTERPRISE 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 La Franaise with a short position of ENTERPRISE. Check out your portfolio center. Please also check ongoing floating volatility patterns of La Franaise and ENTERPRISE.

Diversification Opportunities for La Franaise and ENTERPRISE

0.06

Correlation Coefficient

La Franaise  ENTERPRISE

Significant diversification

The 3 months correlation between LFDJF and ENTERPRISE is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding La Franaise des and ENTERPRISE PRODUCTS OPERATING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERPRISE PRODUCTS and La Franaise 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 La Franaise des are associated (or correlated) with ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERPRISE PRODUCTS has no effect on the direction of La Franaise i.e., La Franaise and ENTERPRISE go up and down completely randomly.

Pair Corralation between La Franaise and ENTERPRISE

Assuming the 90 days horizon La Franaise des is expected to under-perform the ENTERPRISE. In addition to that, La Franaise is 1.93 times more volatile than ENTERPRISE PRODUCTS OPERATING. It trades about -0.07 of its total potential returns per unit of risk. ENTERPRISE PRODUCTS OPERATING is currently generating about -0.06 per unit of volatility. If you would invest  9,566  in ENTERPRISE PRODUCTS OPERATING on June 29, 2025 and sell it today you would lose (553.00) from holding ENTERPRISE PRODUCTS OPERATING or give up 5.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

La Franaise des  vs.  ENTERPRISE PRODUCTS OPERATING

La Franaise des

Risk-Adjusted Performance

Weakest

Over the last 90 days La Franaise des has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

ENTERPRISE PRODUCTS

Risk-Adjusted Performance

Weakest

Over the last 90 days ENTERPRISE PRODUCTS OPERATING has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ENTERPRISE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with La Franaise and ENTERPRISE

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

The idea behind La Franaise des and ENTERPRISE PRODUCTS OPERATING 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.