Correlation Between Encore Capital and Enbridge 6375
Can any of the company-specific risk be diversified away by investing in both Encore Capital and Enbridge 6375 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Encore Capital and Enbridge 6375 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Encore Capital Group and Enbridge 6375 Fixed, you can compare the effects of market volatilities on Encore Capital and Enbridge 6375 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 Encore Capital with a short position of Enbridge 6375. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encore Capital and Enbridge 6375.
Diversification Opportunities for Encore Capital and Enbridge 6375
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Encore and Enbridge is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and Enbridge 6375 Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge 6375 Fixed and Encore Capital 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 Encore Capital Group are associated (or correlated) with Enbridge 6375. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge 6375 Fixed has no effect on the direction of Encore Capital i.e., Encore Capital and Enbridge 6375 go up and down completely randomly.
Pair Corralation between Encore Capital and Enbridge 6375
If you would invest 4,594 in Encore Capital Group on September 4, 2024 and sell it today you would earn a total of 241.00 from holding Encore Capital Group or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Encore Capital Group vs. Enbridge 6375 Fixed
Performance |
| Timeline |
| Encore Capital Group |
| Enbridge 6375 Fixed |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Encore Capital and Enbridge 6375 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Encore Capital and Enbridge 6375
The main advantage of trading using opposite Encore Capital and Enbridge 6375 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encore Capital position performs unexpectedly, Enbridge 6375 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 6375 will offset losses from the drop in Enbridge 6375's long position.| Encore Capital vs. Guild Holdings Co | Encore Capital vs. Mr Cooper Group | Encore Capital vs. CNFinance Holdings | Encore Capital vs. Security National Financial |
| Enbridge 6375 vs. Western Union Co | Enbridge 6375 vs. Glacier Bancorp | Enbridge 6375 vs. Minerals Technologies | Enbridge 6375 vs. Encore Capital Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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