Enbridge Preferred Stock Market Value
| ENB-PI Preferred Stock | 20.90 0.00 0.00% |
| Symbol | Enbridge |
Enbridge 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Enbridge's preferred stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Enbridge.
| 11/05/2024 |
| 01/04/2025 |
If you would invest 0.00 in Enbridge on November 5, 2024 and sell it all today you would earn a total of 0.00 from holding Enbridge or generate 0.0% return on investment in Enbridge over 60 days.
Enbridge Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Enbridge's preferred stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Enbridge upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 6.4 | |||
| Information Ratio | 0.026 | |||
| Maximum Drawdown | 17.66 | |||
| Value At Risk | (5.23) | |||
| Potential Upside | 4.87 |
Enbridge Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Enbridge's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Enbridge's standard deviation. In reality, there are many statistical measures that can use Enbridge historical prices to predict the future Enbridge's volatility.| Risk Adjusted Performance | 0.0348 | |||
| Jensen Alpha | 0.0743 | |||
| Total Risk Alpha | 0.0413 | |||
| Sortino Ratio | 0.0109 | |||
| Treynor Ratio | 0.1283 |
Enbridge Backtested Returns
At this point, Enbridge is not too volatile. Enbridge secures Sharpe Ratio (or Efficiency) of 0.0074, which denotes the company had a 0.0074% return per unit of standard deviation over the last 3 months. We have found twenty-four technical indicators for Enbridge, which you can use to evaluate the volatility of the firm. Please confirm Enbridge's Mean Deviation of 1.17, semi deviation of 1.89, and Downside Deviation of 6.4 to check if the risk estimate we provide is consistent with the expected return of 0.0203%. The firm shows a Beta (market volatility) of 0.64, which means possible diversification benefits within a given portfolio. As returns on the market increase, Enbridge's returns are expected to increase less than the market. However, during the bear market, the loss of holding Enbridge is expected to be smaller as well. Enbridge right now shows a risk of 2.75%. Please confirm Enbridge information ratio, treynor ratio, and the relationship between the downside deviation and total risk alpha , to decide if Enbridge will be following its price patterns.
Auto-correlation | -0.14 |
Insignificant reverse predictability
Enbridge has insignificant reverse predictability. Overlapping area represents the amount of predictability between Enbridge time series from 5th of November 2024 to 5th of December 2024 and 5th of December 2024 to 4th of January 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Enbridge price movement. The serial correlation of -0.14 indicates that less than 14.0% of current Enbridge price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.14 | |
| Spearman Rank Test | 0.49 | |
| Residual Average | 0.0 | |
| Price Variance | 0.18 |
Enbridge lagged returns against current returns
Autocorrelation, which is Enbridge preferred stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Enbridge's preferred stock expected returns. We can calculate the autocorrelation of Enbridge returns to help us make a trade decision. For example, suppose you find that Enbridge has exhibited high autocorrelation historically, and you observe that the preferred stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Enbridge regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Enbridge preferred stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Enbridge preferred stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Enbridge preferred stock over time.
Current vs Lagged Prices |
| Timeline |
Enbridge Lagged Returns
When evaluating Enbridge's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Enbridge preferred stock have on its future price. Enbridge autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Enbridge autocorrelation shows the relationship between Enbridge preferred stock current value and its past values and can show if there is a momentum factor associated with investing in Enbridge.
Regressed Prices |
| Timeline |
Pair Trading with Enbridge
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Enbridge position performs unexpectedly, the other equity 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 will appreciate offsetting losses from the drop in the long position's value.Moving against Enbridge Preferred Stock
The ability to find closely correlated positions to Enbridge could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Enbridge when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Enbridge - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Enbridge to buy it.
The correlation of Enbridge is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Enbridge moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Enbridge moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Enbridge can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.