Correlation Between Enbridge Pref and PHN Multi
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By analyzing existing cross correlation between Enbridge Pref Series and PHN Multi Style All Cap, you can compare the effects of market volatilities on Enbridge Pref and PHN Multi 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 PHN Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and PHN Multi.
Diversification Opportunities for Enbridge Pref and PHN Multi
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enbridge and PHN is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref Series and PHN Multi Style All Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHN Multi Style 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 Series are associated (or correlated) with PHN Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHN Multi Style has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and PHN Multi go up and down completely randomly.
Pair Corralation between Enbridge Pref and PHN Multi
Assuming the 90 days trading horizon Enbridge Pref Series is expected to generate 0.23 times more return on investment than PHN Multi. However, Enbridge Pref Series is 4.31 times less risky than PHN Multi. It trades about -0.05 of its potential returns per unit of risk. PHN Multi Style All Cap is currently generating about -0.18 per unit of risk. If you would invest 2,268 in Enbridge Pref Series on October 1, 2024 and sell it today you would lose (13.00) from holding Enbridge Pref Series or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Enbridge Pref Series vs. PHN Multi Style All Cap
Performance |
| Timeline |
| Enbridge Pref Series |
| PHN Multi Style |
Enbridge Pref and PHN Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and PHN Multi
The main advantage of trading using opposite Enbridge Pref and PHN Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, PHN Multi 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 PHN Multi will offset losses from the drop in PHN Multi's long position.The idea behind Enbridge Pref Series and PHN Multi Style All Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PHN Multi vs. Mawer Equity A | PHN Multi vs. TD Index Fund | PHN Multi vs. iShares Canadian HYBrid | PHN Multi vs. Altagas Cum Red |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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