Correlation Between Enbridge Pref and Emera
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By analyzing existing cross correlation between Enbridge Pref Series 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
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Emera is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref Series 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 Series 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 Series is expected to under-perform the Emera. But the preferred stock apears to be less risky and, when comparing its historical volatility, Enbridge Pref Series is 1.33 times less risky than Emera. The preferred stock trades about -0.08 of its potential returns per unit of risk. The Emera Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,334 in Emera Inc on September 23, 2024 and sell it today you would earn a total of 6.00 from holding Emera Inc or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref Series vs. Emera Inc
Performance |
| Timeline |
| Enbridge Pref Series |
| 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. Pembina Pipeline Corp | Enbridge Pref vs. Emera Inc | Enbridge Pref vs. Enbridge Pref 13 | Enbridge Pref vs. Enbridge Pref 15 |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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