Correlation Between Dominion Lending and Enbridge Pref
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By analyzing existing cross correlation between Dominion Lending Centres and Enbridge Pref 11, you can compare the effects of market volatilities on Dominion Lending 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 Dominion Lending with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dominion Lending and Enbridge Pref.
Diversification Opportunities for Dominion Lending and Enbridge Pref
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dominion and Enbridge is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Dominion Lending Centres and Enbridge Pref 11 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 11 and Dominion Lending 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 Dominion Lending Centres 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 11 has no effect on the direction of Dominion Lending i.e., Dominion Lending and Enbridge Pref go up and down completely randomly.
Pair Corralation between Dominion Lending and Enbridge Pref
Assuming the 90 days trading horizon Dominion Lending Centres is expected to generate 2.73 times more return on investment than Enbridge Pref. However, Dominion Lending is 2.73 times more volatile than Enbridge Pref 11. It trades about 0.07 of its potential returns per unit of risk. Enbridge Pref 11 is currently generating about 0.06 per unit of risk. If you would invest 315.00 in Dominion Lending Centres on October 23, 2024 and sell it today you would earn a total of 465.00 from holding Dominion Lending Centres or generate 147.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Dominion Lending Centres vs. Enbridge Pref 11
Performance |
| Timeline |
| Dominion Lending Centres |
| Enbridge Pref 11 |
Dominion Lending and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dominion Lending and Enbridge Pref
The main advantage of trading using opposite Dominion Lending and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dominion Lending 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.| Dominion Lending vs. Titanium Transportation Group | Dominion Lending vs. Alignvest Acquisition II | Dominion Lending vs. Propel Holdings | Dominion Lending vs. Dexterra Group |
| Enbridge Pref vs. Air Canada | Enbridge Pref vs. Dominion Lending Centres | Enbridge Pref vs. CI Financial Corp | Enbridge Pref vs. Canso Credit Trust |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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