Correlation Between Enbridge 6375 and Hasbro

Can any of the company-specific risk be diversified away by investing in both Enbridge 6375 and Hasbro 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 Enbridge 6375 and Hasbro into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enbridge 6375 Fixed and Hasbro Inc, you can compare the effects of market volatilities on Enbridge 6375 and Hasbro 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 6375 with a short position of Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge 6375 and Hasbro.

Diversification Opportunities for Enbridge 6375 and Hasbro

-0.76

Correlation Coefficient

Enbridge 6375  Hasbro

Pay attention - limited upside

The 3 months correlation between Enbridge and Hasbro is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge 6375 Fixed and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc and Enbridge 6375 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 6375 Fixed are associated (or correlated) with Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of Enbridge 6375 i.e., Enbridge 6375 and Hasbro go up and down completely randomly.

Pair Corralation between Enbridge 6375 and Hasbro

If you would invest  2,540  in Enbridge 6375 Fixed on September 20, 2024 and sell it today you would earn a total of  0.00  from holding Enbridge 6375 Fixed or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Enbridge 6375 Fixed  vs.  Hasbro Inc

Enbridge 6375 Fixed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enbridge 6375 Fixed has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Enbridge 6375 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Hasbro Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hasbro Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Enbridge 6375 and Hasbro

The main advantage of trading using opposite Enbridge 6375 and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge 6375 position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.

The idea behind Enbridge 6375 Fixed and Hasbro Inc 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.