Correlation Between Thunderbird Entertainment and Enbridge Pref

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

By analyzing existing cross correlation between Thunderbird Entertainment Group and Enbridge Pref 3, you can compare the effects of market volatilities on Thunderbird Entertainment 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 Thunderbird Entertainment with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunderbird Entertainment and Enbridge Pref.

Diversification Opportunities for Thunderbird Entertainment and Enbridge Pref

0.37

Correlation Coefficient

Thunderbird Entertainment  Enbridge Pref

Weak diversification

The 3 months correlation between Thunderbird and Enbridge is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Thunderbird Entertainment Grou and Enbridge Pref 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 3 and Thunderbird Entertainment 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 Thunderbird Entertainment Group 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 3 has no effect on the direction of Thunderbird Entertainment i.e., Thunderbird Entertainment and Enbridge Pref go up and down completely randomly.

Pair Corralation between Thunderbird Entertainment and Enbridge Pref

Assuming the 90 days trading horizon Thunderbird Entertainment Group is expected to under-perform the Enbridge Pref. In addition to that, Thunderbird Entertainment is 4.4 times more volatile than Enbridge Pref 3. It trades about -0.11 of its total potential returns per unit of risk. Enbridge Pref 3 is currently generating about 0.38 per unit of volatility. If you would invest  1,817  in Enbridge Pref 3 on October 10, 2024 and sell it today you would earn a total of  81.00  from holding Enbridge Pref 3 or generate 4.46% return on investment over 90 days.

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

Thunderbird Entertainment Grou  vs.  Enbridge Pref 3

Thunderbird Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thunderbird Entertainment Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Enbridge Pref 3

Risk-Adjusted Performance

17 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Enbridge Pref 3 are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental drivers, Enbridge Pref may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Thunderbird Entertainment and Enbridge Pref

The main advantage of trading using opposite Thunderbird Entertainment and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunderbird Entertainment 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 Thunderbird Entertainment Group and Enbridge Pref 3 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.