Backtest
The backtest results reveal that EWBC's earnings beats lead to mixed short-term performance but modest positive returns over 30 days, while earnings misses cause strong short-term gains that reverse into losses by 30 days. Industry-wide, earnings beats in the Banks sector yield minimal positive returns, and misses result in small but consistent negative reactions. This suggests that while EWBC shows potential for gains with patience after beats, investors should be cautious with short-term trades after misses and remain wary of broader industry trends. A balanced approach considering both company and sector dynamics is advisable.
