Correlation Between Enbridge Pref and Globex Mining
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By analyzing existing cross correlation between Enbridge Pref 13 and Globex Mining Enterprises, you can compare the effects of market volatilities on Enbridge Pref and Globex Mining 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 Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Globex Mining.
Diversification Opportunities for Enbridge Pref and Globex Mining
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enbridge and Globex is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 13 and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises 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 Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Globex Mining go up and down completely randomly.
Pair Corralation between Enbridge Pref and Globex Mining
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 1.46 times less return on investment than Globex Mining. But when comparing it to its historical volatility, Enbridge Pref 13 is 2.78 times less risky than Globex Mining. It trades about 0.17 of its potential returns per unit of risk. Globex Mining Enterprises is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 111.00 in Globex Mining Enterprises on September 26, 2024 and sell it today you would earn a total of 5.00 from holding Globex Mining Enterprises or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 13 vs. Globex Mining Enterprises
Performance |
| Timeline |
| Enbridge Pref 13 |
| Globex Mining Enterprises |
Enbridge Pref and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Globex Mining
The main advantage of trading using opposite Enbridge Pref and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Globex Mining 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| Enbridge Pref vs. Globex Mining Enterprises | Enbridge Pref vs. Quipt Home Medical | Enbridge Pref vs. Dream Industrial Real | Enbridge Pref vs. Cogeco Communications |
| Globex Mining vs. Monarca Minerals | Globex Mining vs. Outcrop Gold Corp | Globex Mining vs. Grande Portage Resources | Globex Mining vs. Klondike Silver 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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