Correlation Between Enbridge and Enbridge Pref
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By analyzing existing cross correlation between Enbridge Pref Series and Enbridge Pref 13, you can compare the effects of market volatilities on Enbridge and Enbridge Pref 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 with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge and Enbridge Pref.
Diversification Opportunities for Enbridge and Enbridge Pref
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enbridge and Enbridge is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref Series and Enbridge Pref 13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 13 and Enbridge 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 Enbridge Pref. 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 13 has no effect on the direction of Enbridge i.e., Enbridge and Enbridge Pref go up and down completely randomly.
Pair Corralation between Enbridge and Enbridge Pref
Assuming the 90 days trading horizon Enbridge Pref Series is expected to generate 1.9 times more return on investment than Enbridge Pref. However, Enbridge is 1.9 times more volatile than Enbridge Pref 13. It trades about -0.06 of its potential returns per unit of risk. Enbridge Pref 13 is currently generating about -0.14 per unit of risk. If you would invest 2,395 in Enbridge Pref Series on December 10, 2024 and sell it today you would lose (23.00) from holding Enbridge Pref Series or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref Series vs. Enbridge Pref 13
Performance |
| Timeline |
| Enbridge Pref Series |
| Enbridge Pref 13 |
Enbridge and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge and Enbridge Pref
The main advantage of trading using opposite Enbridge and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge position performs unexpectedly, Enbridge Pref 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 Pref will offset losses from the drop in Enbridge Pref's long position.| Enbridge vs. Pembina Pipeline Corp | Enbridge vs. Emera Inc | Enbridge vs. Enbridge Pref 13 | Enbridge vs. Enbridge Pref 15 |
| Enbridge Pref vs. Maple Leaf Foods | Enbridge Pref vs. Plantify Foods | Enbridge Pref vs. Canlan Ice Sports | Enbridge Pref vs. CNJ Capital Investments |
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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