Correlation Between Enbridge Pref and Emera
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref 13 and Emera Inc, you can compare the effects of market volatilities on Enbridge Pref and Emera 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 Emera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Emera.
Diversification Opportunities for Enbridge Pref and Emera
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enbridge and Emera is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 13 and Emera Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emera Inc 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 13 are associated (or correlated) with Emera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emera Inc has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Emera go up and down completely randomly.
Pair Corralation between Enbridge Pref and Emera
Assuming the 90 days trading horizon Enbridge Pref 13 is expected to generate 0.78 times more return on investment than Emera. However, Enbridge Pref 13 is 1.29 times less risky than Emera. It trades about 0.14 of its potential returns per unit of risk. Emera Inc is currently generating about 0.09 per unit of risk. If you would invest 1,294 in Enbridge Pref 13 on December 11, 2024 and sell it today you would earn a total of 601.00 from holding Enbridge Pref 13 or generate 46.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.44% |
| Values | Daily Returns |
Enbridge Pref 13 vs. Emera Inc
Performance |
| Timeline |
| Enbridge Pref 13 |
| Emera Inc |
Enbridge Pref and Emera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Emera
The main advantage of trading using opposite Enbridge Pref and Emera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Emera 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 Emera will offset losses from the drop in Emera's long position.| Enbridge Pref vs. Applied Materials, | Enbridge Pref vs. South Pacific Metals | Enbridge Pref vs. Renoworks Software | Enbridge Pref vs. Mayfair Acquisition |
| Emera vs. Emera Pref F | Emera vs. Emera Srs C | Emera vs. Fortis Pref M | Emera vs. Brookfield Renewable Partners |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |