Correlation Between Apple and Enbridge Pref
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By analyzing existing cross correlation between Apple Inc CDR and Enbridge Pref 13, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Enbridge Pref.
Diversification Opportunities for Apple and Enbridge Pref
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apple and Enbridge is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Enbridge Pref 13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 13 and Apple 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 Apple Inc CDR 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 13 has no effect on the direction of Apple i.e., Apple and Enbridge Pref go up and down completely randomly.
Pair Corralation between Apple and Enbridge Pref
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 1.72 times more return on investment than Enbridge Pref. However, Apple is 1.72 times more volatile than Enbridge Pref 13. It trades about 0.12 of its potential returns per unit of risk. Enbridge Pref 13 is currently generating about 0.18 per unit of risk. If you would invest 3,082 in Apple Inc CDR on September 23, 2024 and sell it today you would earn a total of 649.00 from holding Apple Inc CDR or generate 21.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.62% |
| Values | Daily Returns |
Apple Inc CDR vs. Enbridge Pref 13
Performance |
| Timeline |
| Apple Inc CDR |
| Enbridge Pref 13 |
Apple and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Enbridge Pref
The main advantage of trading using opposite Apple and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. iShares Canadian HYBrid | Apple vs. Altagas Cum Red | Apple vs. European Residential Real | Apple vs. iShares Fundamental Hedged |
| Enbridge Pref vs. Enbridge Pref 5 | Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. Enbridge Pref L | Enbridge Pref vs. E Split Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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