Correlation Between Canadian Utilities and Enbridge Pref
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By analyzing existing cross correlation between Canadian Utilities Ltd and Enbridge Pref 13, you can compare the effects of market volatilities on Canadian Utilities 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 Canadian Utilities with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Utilities and Enbridge Pref.
Diversification Opportunities for Canadian Utilities and Enbridge Pref
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Canadian and Enbridge is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Utilities Ltd 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 Canadian Utilities 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 Canadian Utilities Ltd 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 Canadian Utilities i.e., Canadian Utilities and Enbridge Pref go up and down completely randomly.
Pair Corralation between Canadian Utilities and Enbridge Pref
Assuming the 90 days trading horizon Canadian Utilities is expected to generate 4.93 times less return on investment than Enbridge Pref. But when comparing it to its historical volatility, Canadian Utilities Ltd is 1.48 times less risky than Enbridge Pref. It trades about 0.07 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 1,792 in Enbridge Pref 13 on September 23, 2024 and sell it today you would earn a total of 127.00 from holding Enbridge Pref 13 or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Canadian Utilities Ltd vs. Enbridge Pref 13
Performance |
| Timeline |
| Canadian Utilities |
| Enbridge Pref 13 |
Canadian Utilities and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Utilities and Enbridge Pref
The main advantage of trading using opposite Canadian Utilities and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Utilities 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.| Canadian Utilities vs. VersaBank | Canadian Utilities vs. Royal Bank of | Canadian Utilities vs. Bank of Nova | Canadian Utilities vs. Bragg Gaming Group |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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