Correlation Between Enbridge Pref and Eni SPA
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By analyzing existing cross correlation between Enbridge Pref 11 and Enterprise Group, you can compare the effects of market volatilities on Enbridge Pref and Eni SPA 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 Eni SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Eni SPA.
Diversification Opportunities for Enbridge Pref and Eni SPA
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enbridge and Eni is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and Enterprise Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enterprise Group 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 Eni SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enterprise Group has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Eni SPA go up and down completely randomly.
Pair Corralation between Enbridge Pref and Eni SPA
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 12.52 times less return on investment than Eni SPA. But when comparing it to its historical volatility, Enbridge Pref 11 is 7.9 times less risky than Eni SPA. It trades about 0.1 of its potential returns per unit of risk. Enterprise Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Enterprise Group on September 12, 2024 and sell it today you would earn a total of 178.00 from holding Enterprise Group or generate 1369.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Enbridge Pref 11 vs. Enterprise Group
Performance |
| Timeline |
| Enbridge Pref 11 |
| Enterprise Group |
Enbridge Pref and Eni SPA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Eni SPA
The main advantage of trading using opposite Enbridge Pref and Eni SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Eni SPA 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 Eni SPA will offset losses from the drop in Eni SPA's long position.| Enbridge Pref vs. Canlan Ice Sports | Enbridge Pref vs. Verizon Communications CDR | Enbridge Pref vs. NeXGold Mining Corp | Enbridge Pref vs. Rogers Communications |
| Eni SPA vs. Enbridge Pref 5 | Eni SPA vs. Enbridge Pref 11 | Eni SPA vs. Enbridge Pref L | Eni SPA vs. E Split 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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