Correlation Between ENTERPRISE and Catalyst Bancorp

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

By analyzing existing cross correlation between ENTERPRISE PRODS OPER and Catalyst Bancorp, you can compare the effects of market volatilities on ENTERPRISE and Catalyst 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 with a short position of Catalyst Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENTERPRISE and Catalyst Bancorp.

Diversification Opportunities for ENTERPRISE and Catalyst Bancorp

-0.3

Correlation Coefficient

ENTERPRISE  Catalyst Bancorp

Very good diversification

The 3 months correlation between ENTERPRISE and Catalyst is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ENTERPRISE PRODS OPER and Catalyst Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Bancorp and ENTERPRISE 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 PRODS OPER are associated (or correlated) with Catalyst Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Bancorp has no effect on the direction of ENTERPRISE i.e., ENTERPRISE and Catalyst Bancorp go up and down completely randomly.

Pair Corralation between ENTERPRISE and Catalyst Bancorp

Assuming the 90 days trading horizon ENTERPRISE PRODS OPER is expected to generate 1.04 times more return on investment than Catalyst Bancorp. However, ENTERPRISE is 1.04 times more volatile than Catalyst Bancorp. It trades about 0.11 of its potential returns per unit of risk. Catalyst Bancorp is currently generating about 0.11 per unit of risk. If you would invest  10,265  in ENTERPRISE PRODS OPER on May 12, 2025 and sell it today you would earn a total of  675.00  from holding ENTERPRISE PRODS OPER or generate 6.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.3%
Values	Daily Returns

ENTERPRISE PRODS OPER  vs.  Catalyst Bancorp

ENTERPRISE PRODS OPER

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ENTERPRISE PRODS OPER are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, ENTERPRISE may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Catalyst Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Bancorp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Catalyst Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with ENTERPRISE and Catalyst Bancorp

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

The idea behind ENTERPRISE PRODS OPER and Catalyst Bancorp 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.