Correlation Between Enbridge Pref and E Split
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By analyzing existing cross correlation between Enbridge Pref 11 and E Split Corp, you can compare the effects of market volatilities on Enbridge Pref and E Split 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 E Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and E Split.
Diversification Opportunities for Enbridge Pref and E Split
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Enbridge and ENS-PA is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and E Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Split Corp 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 E Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Split Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and E Split go up and down completely randomly.
Pair Corralation between Enbridge Pref and E Split
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 3.55 times less return on investment than E Split. But when comparing it to its historical volatility, Enbridge Pref 11 is 1.47 times less risky than E Split. It trades about 0.12 of its potential returns per unit of risk. E Split Corp is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,066 in E Split Corp on August 27, 2024 and sell it today you would earn a total of 51.00 from holding E Split Corp or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 11 vs. E Split Corp
Performance |
| Timeline |
| Enbridge Pref 11 |
| E Split Corp |
Enbridge Pref and E Split Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and E Split
The main advantage of trading using opposite Enbridge Pref and E Split positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, E Split 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 E Split will offset losses from the drop in E Split's long position.| Enbridge Pref vs. Precious Metals And | Enbridge Pref vs. Advent Wireless | Enbridge Pref vs. Major Drilling Group | Enbridge Pref vs. East Side Games |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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