Correlation Between Postmedia Network and Enbridge Pref
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By analyzing existing cross correlation between Postmedia Network Canada and Enbridge Pref 11, you can compare the effects of market volatilities on Postmedia Network 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 Postmedia Network with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postmedia Network and Enbridge Pref.
Diversification Opportunities for Postmedia Network and Enbridge Pref
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Postmedia and Enbridge is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Postmedia Network Canada 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 Postmedia Network 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 Postmedia Network Canada 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 Postmedia Network i.e., Postmedia Network and Enbridge Pref go up and down completely randomly.
Pair Corralation between Postmedia Network and Enbridge Pref
Assuming the 90 days trading horizon Postmedia Network Canada is expected to under-perform the Enbridge Pref. In addition to that, Postmedia Network is 2.56 times more volatile than Enbridge Pref 11. It trades about -0.13 of its total potential returns per unit of risk. Enbridge Pref 11 is currently generating about 0.16 per unit of volatility. If you would invest 1,795 in Enbridge Pref 11 on September 12, 2024 and sell it today you would earn a total of 106.00 from holding Enbridge Pref 11 or generate 5.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Postmedia Network Canada vs. Enbridge Pref 11
Performance |
Timeline |
Postmedia Network Canada |
Enbridge Pref 11 |
Postmedia Network and Enbridge Pref Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Postmedia Network and Enbridge Pref
The main advantage of trading using opposite Postmedia Network and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postmedia Network 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.Postmedia Network vs. Income Financial Trust | Postmedia Network vs. Quipt Home Medical | Postmedia Network vs. Atrium Mortgage Investment | Postmedia Network vs. Olympia Financial Group |
Enbridge Pref vs. Canlan Ice Sports | Enbridge Pref vs. Verizon Communications CDR | Enbridge Pref vs. NeXGold Mining Corp | Enbridge Pref vs. Rogers Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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