Correlation Between Canso Select and Enbridge Pref
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By analyzing existing cross correlation between Canso Select Opportunities and Enbridge Pref L, you can compare the effects of market volatilities on Canso Select 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 Canso Select with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Select and Enbridge Pref.
Diversification Opportunities for Canso Select and Enbridge Pref
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canso and Enbridge is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Canso Select Opportunities and Enbridge Pref L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref L and Canso Select 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 Canso Select Opportunities 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 L has no effect on the direction of Canso Select i.e., Canso Select and Enbridge Pref go up and down completely randomly.
Pair Corralation between Canso Select and Enbridge Pref
Assuming the 90 days trading horizon Canso Select is expected to generate 1.12 times less return on investment than Enbridge Pref. In addition to that, Canso Select is 4.96 times more volatile than Enbridge Pref L. It trades about 0.02 of its total potential returns per unit of risk. Enbridge Pref L is currently generating about 0.13 per unit of volatility. If you would invest 2,118 in Enbridge Pref L on August 31, 2024 and sell it today you would earn a total of 109.00 from holding Enbridge Pref L or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Canso Select Opportunities vs. Enbridge Pref L
Performance |
| Timeline |
| Canso Select Opportu |
| Enbridge Pref L |
Canso Select and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Select and Enbridge Pref
The main advantage of trading using opposite Canso Select and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Select 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.| Canso Select vs. iShares Canadian HYBrid | Canso Select vs. Brompton European Dividend | Canso Select vs. Solar Alliance Energy | Canso Select vs. PHN Multi Style All Cap |
| Enbridge Pref vs. Enbridge Pref 5 | Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. E Split Corp | 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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