Correlation Between Enbridge Pref and Enbridge Pref
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By analyzing existing cross correlation between Enbridge Pref 15 and Enbridge Pref 11, you can compare the effects of market volatilities on Enbridge Pref and Enbridge Pref 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 Enbridge Pref with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Enbridge Pref.
Diversification Opportunities for Enbridge Pref and Enbridge Pref
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Enbridge and Enbridge is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 15 and Enbridge Pref 11 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 11 and Enbridge Pref 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 Enbridge Pref 15 are associated (or correlated) with Enbridge Pref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Pref 11 has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Enbridge Pref go up and down completely randomly.
Pair Corralation between Enbridge Pref and Enbridge Pref
Assuming the 90 days trading horizon Enbridge Pref 15 is expected to generate 1.11 times more return on investment than Enbridge Pref. However, Enbridge Pref is 1.11 times more volatile than Enbridge Pref 11. It trades about 0.06 of its potential returns per unit of risk. Enbridge Pref 11 is currently generating about 0.07 per unit of risk. If you would invest 1,328 in Enbridge Pref 15 on September 23, 2024 and sell it today you would earn a total of 567.00 from holding Enbridge Pref 15 or generate 42.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 97.78% |
Values | Daily Returns |
Enbridge Pref 15 vs. Enbridge Pref 11
Performance |
Timeline |
Enbridge Pref 15 |
Enbridge Pref 11 |
Enbridge Pref and Enbridge Pref Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enbridge Pref and Enbridge Pref
The main advantage of trading using opposite Enbridge Pref and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Enbridge Pref 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 Enbridge Pref will offset losses from the drop in Enbridge Pref's long position.Enbridge Pref vs. CVW CleanTech | Enbridge Pref vs. Quisitive Technology Solutions | Enbridge Pref vs. Profound Medical Corp | Enbridge Pref vs. Birchtech Corp |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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