Correlation Between Enbridge Pref and Enbridge
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By analyzing existing cross correlation between Enbridge Pref 13 and Enbridge Pref 5, you can compare the effects of market volatilities on Enbridge Pref and Enbridge 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 Enbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Enbridge.
Diversification Opportunities for Enbridge Pref and Enbridge
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Enbridge and Enbridge is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 13 and Enbridge Pref 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 5 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 Enbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge Pref 5 has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Enbridge go up and down completely randomly.
Pair Corralation between Enbridge Pref and Enbridge
Assuming the 90 days trading horizon Enbridge Pref 13 is expected to under-perform the Enbridge. But the preferred stock apears to be less risky and, when comparing its historical volatility, Enbridge Pref 13 is 1.89 times less risky than Enbridge. The preferred stock trades about -0.14 of its potential returns per unit of risk. The Enbridge Pref 5 is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,359 in Enbridge Pref 5 on December 11, 2024 and sell it today you would earn a total of 56.00 from holding Enbridge Pref 5 or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Enbridge Pref 13 vs. Enbridge Pref 5
Performance |
| Timeline |
| Enbridge Pref 13 |
| Enbridge Pref 5 |
Enbridge Pref and Enbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Enbridge
The main advantage of trading using opposite Enbridge Pref and Enbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Enbridge 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 Enbridge will offset losses from the drop in Enbridge's long position.| Enbridge Pref vs. Maple Leaf Foods | Enbridge Pref vs. Plantify Foods | Enbridge Pref vs. Canlan Ice Sports | Enbridge Pref vs. CNJ Capital Investments |
| Enbridge vs. DRI Healthcare Trust | Enbridge vs. Cogeco Communications | Enbridge vs. Jamieson Wellness | Enbridge vs. CVS HEALTH CDR |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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