Correlation Between Enbridge Pref and Dow Jones
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By analyzing existing cross correlation between Enbridge Pref 15 and Dow Jones Industrial, you can compare the effects of market volatilities on Enbridge Pref and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Dow Jones.
Diversification Opportunities for Enbridge Pref and Dow Jones
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enbridge and Dow is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 15 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 15 are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Dow Jones go up and down completely randomly.
Pair Corralation between Enbridge Pref and Dow Jones
Assuming the 90 days trading horizon Enbridge Pref 15 is expected to generate 0.8 times more return on investment than Dow Jones. However, Enbridge Pref 15 is 1.24 times less risky than Dow Jones. It trades about 0.37 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about -0.21 per unit of risk. If you would invest 1,806 in Enbridge Pref 15 on September 23, 2024 and sell it today you would earn a total of 89.00 from holding Enbridge Pref 15 or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Enbridge Pref 15 vs. Dow Jones Industrial
Performance |
| Timeline |
Enbridge Pref and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Enbridge Pref 15
Pair trading matchups for Enbridge Pref
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Enbridge Pref and Dow Jones
The main advantage of trading using opposite Enbridge Pref and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Enbridge Pref vs. Enbridge Pref 5 | Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. Enbridge Pref L | Enbridge Pref vs. E Split Corp |
| Dow Jones vs. Nok Airlines Public | Dow Jones vs. Alaska Air Group | Dow Jones vs. Universal Music Group | Dow Jones vs. Copa Holdings SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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