Correlation Between Altagas Cum and Enbridge Pref
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By analyzing existing cross correlation between Altagas Cum Red and Enbridge Pref 13, you can compare the effects of market volatilities on Altagas Cum 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 Altagas Cum with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altagas Cum and Enbridge Pref.
Diversification Opportunities for Altagas Cum and Enbridge Pref
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Altagas and Enbridge is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Altagas Cum Red 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 Altagas Cum 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 Altagas Cum Red 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 Altagas Cum i.e., Altagas Cum and Enbridge Pref go up and down completely randomly.
Pair Corralation between Altagas Cum and Enbridge Pref
Assuming the 90 days trading horizon Altagas Cum is expected to generate 1.33 times less return on investment than Enbridge Pref. But when comparing it to its historical volatility, Altagas Cum Red is 1.03 times less risky than Enbridge Pref. It trades about 0.17 of its potential returns per unit of risk. Enbridge Pref 13 is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,850 in Enbridge Pref 13 on October 1, 2024 and sell it today you would earn a total of 47.00 from holding Enbridge Pref 13 or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Altagas Cum Red vs. Enbridge Pref 13
Performance |
| Timeline |
| Altagas Cum Red |
| Enbridge Pref 13 |
Altagas Cum and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altagas Cum and Enbridge Pref
The main advantage of trading using opposite Altagas Cum and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altagas Cum 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.| Altagas Cum vs. EverGen Infrastructure Corp | Altagas Cum vs. NGEx Minerals | Altagas Cum vs. Amazon CDR | Altagas Cum vs. CryptoStar 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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