Correlation Between Cogeco Communications and Enbridge Pref
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By analyzing existing cross correlation between Cogeco Communications and Enbridge Pref 13, you can compare the effects of market volatilities on Cogeco Communications 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 Cogeco Communications with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and Enbridge Pref.
Diversification Opportunities for Cogeco Communications and Enbridge Pref
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cogeco and Enbridge is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications 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 Cogeco Communications 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 Cogeco Communications 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 Cogeco Communications i.e., Cogeco Communications and Enbridge Pref go up and down completely randomly.
Pair Corralation between Cogeco Communications and Enbridge Pref
Assuming the 90 days trading horizon Cogeco Communications is expected to under-perform the Enbridge Pref. In addition to that, Cogeco Communications is 1.79 times more volatile than Enbridge Pref 13. It trades about -0.05 of its total potential returns per unit of risk. Enbridge Pref 13 is currently generating about 0.13 per unit of volatility. If you would invest 1,792 in Enbridge Pref 13 on September 26, 2024 and sell it today you would earn a total of 105.00 from holding Enbridge Pref 13 or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Cogeco Communications vs. Enbridge Pref 13
Performance |
| Timeline |
| Cogeco Communications |
| Enbridge Pref 13 |
Cogeco Communications and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and Enbridge Pref
The main advantage of trading using opposite Cogeco Communications and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications 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.| Cogeco Communications vs. Royal Canadian Mint | Cogeco Communications vs. Cymbria | Cogeco Communications vs. iShares Canadian HYBrid | Cogeco Communications vs. Altagas Cum Red |
| Enbridge Pref vs. Forsys Metals Corp | Enbridge Pref vs. Orbit Garant Drilling | Enbridge Pref vs. Major Drilling Group | Enbridge Pref vs. Xtract One Technologies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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