Correlation Between Enbridge Pref and Cenovus Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref L and Cenovus Energy, you can compare the effects of market volatilities on Enbridge Pref and Cenovus Energy 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 Cenovus Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Cenovus Energy.
Diversification Opportunities for Enbridge Pref and Cenovus Energy
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Enbridge and Cenovus is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and Cenovus Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenovus Energy 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 L are associated (or correlated) with Cenovus Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenovus Energy has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Cenovus Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and Cenovus Energy
Assuming the 90 days trading horizon Enbridge Pref L is expected to generate 0.4 times more return on investment than Cenovus Energy. However, Enbridge Pref L is 2.48 times less risky than Cenovus Energy. It trades about 0.08 of its potential returns per unit of risk. Cenovus Energy is currently generating about -0.12 per unit of risk. If you would invest 2,208 in Enbridge Pref L on September 25, 2024 and sell it today you would earn a total of 22.00 from holding Enbridge Pref L or generate 1.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Enbridge Pref L vs. Cenovus Energy
Performance |
Timeline |
Enbridge Pref L |
Cenovus Energy |
Enbridge Pref and Cenovus Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enbridge Pref and Cenovus Energy
The main advantage of trading using opposite Enbridge Pref and Cenovus Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Cenovus Energy 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 Cenovus Energy will offset losses from the drop in Cenovus Energy's long position.Enbridge Pref vs. Enbridge Pref 5 | Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. E Split Corp | Enbridge Pref vs. Sage Potash Corp |
Cenovus Energy vs. Enbridge Pref 5 | Cenovus Energy vs. Enbridge Pref 11 | Cenovus Energy vs. Enbridge Pref L | Cenovus Energy vs. E Split Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |