Correlation Between Enbridge Pref and Enerflex
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By analyzing existing cross correlation between Enbridge Pref 11 and Enerflex, you can compare the effects of market volatilities on Enbridge Pref and Enerflex 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 Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Enerflex.
Diversification Opportunities for Enbridge Pref and Enerflex
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enbridge and Enerflex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex 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 Enerflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerflex has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Enerflex go up and down completely randomly.
Pair Corralation between Enbridge Pref and Enerflex
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 5.22 times less return on investment than Enerflex. But when comparing it to its historical volatility, Enbridge Pref 11 is 2.99 times less risky than Enerflex. It trades about 0.16 of its potential returns per unit of risk. Enerflex is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 662.00 in Enerflex on September 12, 2024 and sell it today you would earn a total of 699.00 from holding Enerflex or generate 105.59% 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. Enerflex
Performance |
| Timeline |
| Enbridge Pref 11 |
| Enerflex |
Enbridge Pref and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Enerflex
The main advantage of trading using opposite Enbridge Pref and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Enerflex 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 Enerflex will offset losses from the drop in Enerflex'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 |
| Enerflex vs. Richelieu Hardware | Enerflex vs. Mako Mining Corp | Enerflex vs. Getty Copper | Enerflex vs. Algonquin Power Utilities |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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