Correlation Between Enbridge Pref and ProAm Explorations
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By analyzing existing cross correlation between Enbridge Pref 11 and ProAm Explorations Corp, you can compare the effects of market volatilities on Enbridge Pref and ProAm Explorations 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 ProAm Explorations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and ProAm Explorations.
Diversification Opportunities for Enbridge Pref and ProAm Explorations
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enbridge and ProAm is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and ProAm Explorations Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProAm Explorations 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 ProAm Explorations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProAm Explorations Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and ProAm Explorations go up and down completely randomly.
Pair Corralation between Enbridge Pref and ProAm Explorations
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 1.74 times less return on investment than ProAm Explorations. But when comparing it to its historical volatility, Enbridge Pref 11 is 17.46 times less risky than ProAm Explorations. It trades about 0.15 of its potential returns per unit of risk. ProAm Explorations Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 12.00 in ProAm Explorations Corp on October 22, 2024 and sell it today you would lose (8.00) from holding ProAm Explorations Corp or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 11 vs. ProAm Explorations Corp
Performance |
| Timeline |
| Enbridge Pref 11 |
| ProAm Explorations Corp |
Enbridge Pref and ProAm Explorations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and ProAm Explorations
The main advantage of trading using opposite Enbridge Pref and ProAm Explorations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, ProAm Explorations 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 ProAm Explorations will offset losses from the drop in ProAm Explorations' long position.| Enbridge Pref vs. Canlan Ice Sports | Enbridge Pref vs. Cogeco Communications | Enbridge Pref vs. Data Communications Management | Enbridge Pref vs. Rogers Communications |
| ProAm Explorations vs. Calibre Mining Corp | ProAm Explorations vs. Pembina Pipeline Corp | ProAm Explorations vs. XXIX Metal Corp | ProAm Explorations vs. Precision Drilling |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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