Correlation Between Enbridge Pref and Calfrac Well
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By analyzing existing cross correlation between Enbridge Pref 11 and Calfrac Well Services, you can compare the effects of market volatilities on Enbridge Pref and Calfrac Well 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 Calfrac Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Calfrac Well.
Diversification Opportunities for Enbridge Pref and Calfrac Well
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Calfrac is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and Calfrac Well Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calfrac Well Services 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 Calfrac Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calfrac Well Services has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Calfrac Well go up and down completely randomly.
Pair Corralation between Enbridge Pref and Calfrac Well
Assuming the 90 days trading horizon Enbridge Pref 11 is expected to generate 0.37 times more return on investment than Calfrac Well. However, Enbridge Pref 11 is 2.72 times less risky than Calfrac Well. It trades about 0.15 of its potential returns per unit of risk. Calfrac Well Services is currently generating about -0.03 per unit of risk. If you would invest 1,778 in Enbridge Pref 11 on November 28, 2024 and sell it today you would earn a total of 176.00 from holding Enbridge Pref 11 or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.18% |
| Values | Daily Returns |
Enbridge Pref 11 vs. Calfrac Well Services
Performance |
| Timeline |
| Enbridge Pref 11 |
| Calfrac Well Services |
Enbridge Pref and Calfrac Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Calfrac Well
The main advantage of trading using opposite Enbridge Pref and Calfrac Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Calfrac Well 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 Calfrac Well will offset losses from the drop in Calfrac Well's long position.| Enbridge Pref vs. Verizon Communications CDR | Enbridge Pref vs. DRI Healthcare Trust | Enbridge Pref vs. Mako Mining Corp | Enbridge Pref vs. NeXGold Mining Corp |
| Calfrac Well vs. Trican Well Service | Calfrac Well vs. Ensign Energy Services | Calfrac Well vs. Precision Drilling | Calfrac Well vs. Secure Energy Services |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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