Correlation Between Enbridge Pref and Exxon
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By analyzing existing cross correlation between Enbridge Pref 11 and EXXON MOBIL CDR, you can compare the effects of market volatilities on Enbridge Pref and Exxon 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 Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Exxon.
Diversification Opportunities for Enbridge Pref and Exxon
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enbridge and Exxon is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 11 and EXXON MOBIL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL CDR 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 Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL CDR has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Exxon go up and down completely randomly.
Pair Corralation between Enbridge Pref and Exxon
Assuming the 90 days trading horizon Enbridge Pref 11 is expected to generate 0.26 times more return on investment than Exxon. However, Enbridge Pref 11 is 3.92 times less risky than Exxon. It trades about 0.06 of its potential returns per unit of risk. EXXON MOBIL CDR is currently generating about 0.0 per unit of risk. If you would invest 1,442 in Enbridge Pref 11 on October 25, 2024 and sell it today you would earn a total of 584.00 from holding Enbridge Pref 11 or generate 40.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Enbridge Pref 11 vs. EXXON MOBIL CDR
Performance |
| Timeline |
| Enbridge Pref 11 |
| EXXON MOBIL CDR |
Enbridge Pref and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Exxon
The main advantage of trading using opposite Enbridge Pref and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Exxon 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 Exxon will offset losses from the drop in Exxon's long position.| Enbridge Pref vs. Calibre Mining Corp | Enbridge Pref vs. Mako Mining Corp | Enbridge Pref vs. Diversified Royalty Corp | Enbridge Pref vs. Ramp Metals |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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