Correlation Between Enbridge Pref and NuVista Energy
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By analyzing existing cross correlation between Enbridge Pref 11 and NuVista Energy, you can compare the effects of market volatilities on Enbridge Pref and NuVista Energy 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 NuVista Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and NuVista Energy.
Diversification Opportunities for Enbridge Pref and NuVista Energy
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enbridge and NuVista is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and NuVista Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NuVista Energy 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 NuVista Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NuVista Energy has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and NuVista Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and NuVista Energy
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 16.98 times less return on investment than NuVista Energy. But when comparing it to its historical volatility, Enbridge Pref 11 is 4.56 times less risky than NuVista Energy. It trades about 0.12 of its potential returns per unit of risk. NuVista Energy is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 1,098 in NuVista Energy on August 27, 2024 and sell it today you would earn a total of 270.00 from holding NuVista Energy or generate 24.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 11 vs. NuVista Energy
Performance |
| Timeline |
| Enbridge Pref 11 |
| NuVista Energy |
Enbridge Pref and NuVista Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and NuVista Energy
The main advantage of trading using opposite Enbridge Pref and NuVista Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, NuVista Energy 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 NuVista Energy will offset losses from the drop in NuVista Energy'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 |
| NuVista Energy vs. Tamarack Valley Energy | NuVista Energy vs. Birchcliff Energy | NuVista Energy vs. MEG Energy 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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