Correlation Between Citigroup and Enbridge Pref
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By analyzing existing cross correlation between Citigroup and Enbridge Pref 15, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Enbridge Pref.
Diversification Opportunities for Citigroup and Enbridge Pref
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Enbridge is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Enbridge Pref 15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 15 and Citigroup 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 Citigroup 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 15 has no effect on the direction of Citigroup i.e., Citigroup and Enbridge Pref go up and down completely randomly.
Pair Corralation between Citigroup and Enbridge Pref
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Enbridge Pref. In addition to that, Citigroup is 2.01 times more volatile than Enbridge Pref 15. It trades about -0.03 of its total potential returns per unit of risk. Enbridge Pref 15 is currently generating about 0.37 per unit of volatility. If you would invest 1,806 in Enbridge Pref 15 on September 23, 2024 and sell it today you would earn a total of 89.00 from holding Enbridge Pref 15 or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Enbridge Pref 15
Performance |
| Timeline |
| Citigroup |
| Enbridge Pref 15 |
Citigroup and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Enbridge Pref
The main advantage of trading using opposite Citigroup and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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