Correlation Between Enbridge Pref and ARC Resources
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By analyzing existing cross correlation between Enbridge Pref 11 and ARC Resources, you can compare the effects of market volatilities on Enbridge Pref and ARC Resources 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 ARC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and ARC Resources.
Diversification Opportunities for Enbridge Pref and ARC Resources
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enbridge and ARC is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and ARC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARC Resources 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 ARC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARC Resources has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and ARC Resources go up and down completely randomly.
Pair Corralation between Enbridge Pref and ARC Resources
Assuming the 90 days trading horizon Enbridge Pref 11 is expected to generate 0.31 times more return on investment than ARC Resources. However, Enbridge Pref 11 is 3.21 times less risky than ARC Resources. It trades about -0.2 of its potential returns per unit of risk. ARC Resources is currently generating about -0.38 per unit of risk. If you would invest 2,016 in Enbridge Pref 11 on November 9, 2024 and sell it today you would lose (36.00) from holding Enbridge Pref 11 or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 11 vs. ARC Resources
Performance |
| Timeline |
| Enbridge Pref 11 |
| ARC Resources |
Enbridge Pref and ARC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and ARC Resources
The main advantage of trading using opposite Enbridge Pref and ARC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, ARC Resources 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 ARC Resources will offset losses from the drop in ARC Resources' long position.| Enbridge Pref vs. Nova Leap Health | Enbridge Pref vs. Reliq Health Technologies | Enbridge Pref vs. Leveljump Healthcare Corp | Enbridge Pref vs. NorthWest Healthcare Properties |
| ARC Resources vs. Tourmaline Oil Corp | ARC Resources vs. Whitecap Resources | ARC Resources vs. MEG Energy Corp | ARC Resources vs. Vermilion Energy |
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 Positions Ratings module to 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.
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