Correlation Between Oncolytics Biotech and Enbridge Pref

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

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

Diversification Opportunities for Oncolytics Biotech and Enbridge Pref

-0.77

Correlation Coefficient

Oncolytics Biotech  Enbridge Pref

Pay attention - limited upside

The 3 months correlation between Oncolytics and Enbridge is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oncolytics Biotech and Enbridge Pref L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref L and Oncolytics Biotech 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 Oncolytics Biotech 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 L has no effect on the direction of Oncolytics Biotech i.e., Oncolytics Biotech and Enbridge Pref go up and down completely randomly.

Pair Corralation between Oncolytics Biotech and Enbridge Pref

Assuming the 90 days trading horizon Oncolytics Biotech is expected to under-perform the Enbridge Pref. In addition to that, Oncolytics Biotech is 6.94 times more volatile than Enbridge Pref L. It trades about -0.17 of its total potential returns per unit of risk. Enbridge Pref L is currently generating about 0.14 per unit of volatility. If you would invest  2,211  in Enbridge Pref L on December 25, 2024 and sell it today you would earn a total of  108.00  from holding Enbridge Pref L or generate 4.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Oncolytics Biotech  vs.  Enbridge Pref L

Oncolytics Biotech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oncolytics Biotech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Enbridge Pref L

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Enbridge Pref L are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Enbridge Pref is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Oncolytics Biotech and Enbridge Pref

The main advantage of trading using opposite Oncolytics Biotech and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oncolytics Biotech 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.

The idea behind Oncolytics Biotech and Enbridge Pref L 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.