Correlation Between Brompton European and Enbridge Pref
Specify exactly 2 symbols:
By analyzing existing cross correlation between Brompton European Dividend and Enbridge Pref Series, you can compare the effects of market volatilities on Brompton European 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 Brompton European with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brompton European and Enbridge Pref.
Diversification Opportunities for Brompton European and Enbridge Pref
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brompton and Enbridge is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Brompton European Dividend and Enbridge Pref Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref Series and Brompton European 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 Brompton European Dividend 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 Series has no effect on the direction of Brompton European i.e., Brompton European and Enbridge Pref go up and down completely randomly.
Pair Corralation between Brompton European and Enbridge Pref
Assuming the 90 days trading horizon Brompton European Dividend is expected to under-perform the Enbridge Pref. In addition to that, Brompton European is 2.5 times more volatile than Enbridge Pref Series. It trades about -0.08 of its total potential returns per unit of risk. Enbridge Pref Series is currently generating about -0.05 per unit of volatility. If you would invest 2,268 in Enbridge Pref Series on October 1, 2024 and sell it today you would lose (13.00) from holding Enbridge Pref Series or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Brompton European Dividend vs. Enbridge Pref Series
Performance |
| Timeline |
| Brompton European |
| Enbridge Pref Series |
Brompton European and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brompton European and Enbridge Pref
The main advantage of trading using opposite Brompton European and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brompton European 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.| Brompton European vs. Manulife Multifactor Mid | Brompton European vs. Manulife Multifactor Canadian | Brompton European vs. Manulife Multifactor Large | Brompton European vs. Manulife Multifactor Canadian |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |