Correlation Between Enbridge Pref and Enbridge Pref
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By analyzing existing cross correlation between Enbridge Pref Series and Enbridge Pref 5, you can compare the effects of market volatilities on Enbridge Pref 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 Pref with a short position of Enbridge Pref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Enbridge Pref.
Diversification Opportunities for Enbridge Pref and Enbridge Pref
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enbridge and Enbridge is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref Series and Enbridge Pref 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge Pref 5 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 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 5 has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Enbridge Pref go up and down completely randomly.
Pair Corralation between Enbridge Pref and Enbridge Pref
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 3.52 times less return on investment than Enbridge Pref. But when comparing it to its historical volatility, Enbridge Pref Series is 1.72 times less risky than Enbridge Pref. It trades about 0.02 of its potential returns per unit of risk. Enbridge Pref 5 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,662 in Enbridge Pref 5 on September 22, 2024 and sell it today you would earn a total of 733.00 from holding Enbridge Pref 5 or generate 44.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Enbridge Pref Series vs. Enbridge Pref 5
Performance |
| Timeline |
| Enbridge Pref Series |
| Enbridge Pref 5 |
Enbridge Pref and Enbridge Pref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Enbridge Pref
The main advantage of trading using opposite Enbridge Pref and Enbridge Pref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref 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 Pref vs. Pembina Pipeline Corp | Enbridge Pref vs. Emera Inc | Enbridge Pref vs. Enbridge Pref 13 | Enbridge Pref vs. Enbridge Pref 15 |
| Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. Enbridge Pref L | Enbridge Pref vs. E Split Corp | Enbridge Pref vs. E Split 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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