Correlation Between Enbridge Pref and Advantage Oil
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref 11 and Advantage Oil Gas, you can compare the effects of market volatilities on Enbridge Pref and Advantage Oil 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 Enbridge Pref with a short position of Advantage Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Advantage Oil.
Diversification Opportunities for Enbridge Pref and Advantage Oil
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enbridge and Advantage is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and Advantage Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Oil Gas and Enbridge Pref 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 Enbridge Pref 11 are associated (or correlated) with Advantage Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Oil Gas has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Advantage Oil go up and down completely randomly.
Pair Corralation between Enbridge Pref and Advantage Oil
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 3.0 times less return on investment than Advantage Oil. But when comparing it to its historical volatility, Enbridge Pref 11 is 4.6 times less risky than Advantage Oil. It trades about 0.53 of its potential returns per unit of risk. Advantage Oil Gas is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 894.00 in Advantage Oil Gas on October 24, 2024 and sell it today you would earn a total of 118.00 from holding Advantage Oil Gas or generate 13.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 11 vs. Advantage Oil Gas
Performance |
| Timeline |
| Enbridge Pref 11 |
| Advantage Oil Gas |
Enbridge Pref and Advantage Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Advantage Oil
The main advantage of trading using opposite Enbridge Pref and Advantage Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Advantage Oil 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 Advantage Oil will offset losses from the drop in Advantage Oil's long position.| Enbridge Pref vs. Orbit Garant Drilling | Enbridge Pref vs. Air Canada | Enbridge Pref vs. TGS Esports | Enbridge Pref vs. Nicola Mining |
| Advantage Oil vs. Birchcliff Energy | Advantage Oil vs. NuVista Energy | Advantage Oil vs. Kelt Exploration | Advantage Oil vs. Peyto ExplorationDevelopment 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |