Correlation Between Citigroup and Enbridge Pref
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By analyzing existing cross correlation between Citigroup and Enbridge Pref Series, 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
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Enbridge is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Enbridge Pref Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref Series 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 Series 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 generate 2.01 times more return on investment than Enbridge Pref. However, Citigroup is 2.01 times more volatile than Enbridge Pref Series. It trades about -0.03 of its potential returns per unit of risk. Enbridge Pref Series is currently generating about -0.08 per unit of risk. If you would invest 6,984 in Citigroup on September 23, 2024 and sell it today you would lose (65.00) from holding Citigroup or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Enbridge Pref Series
Performance |
| Timeline |
| Citigroup |
| Enbridge Pref Series |
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. Pembina Pipeline Corp | Enbridge Pref vs. Emera Inc | Enbridge Pref vs. Enbridge Pref 13 | Enbridge Pref vs. Enbridge Pref 15 |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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