Correlation Between Enbridge and Pembina Pipeline
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By analyzing existing cross correlation between Enbridge Pref Series and Pembina Pipeline Corp, you can compare the effects of market volatilities on Enbridge and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge and Pembina Pipeline.
Diversification Opportunities for Enbridge and Pembina Pipeline
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enbridge and Pembina is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref Series and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of Enbridge i.e., Enbridge and Pembina Pipeline go up and down completely randomly.
Pair Corralation between Enbridge and Pembina Pipeline
Assuming the 90 days trading horizon Enbridge Pref Series is expected to under-perform the Pembina Pipeline. In addition to that, Enbridge is 1.28 times more volatile than Pembina Pipeline Corp. It trades about -0.06 of its total potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.01 per unit of volatility. If you would invest 2,413 in Pembina Pipeline Corp on December 10, 2024 and sell it today you would earn a total of 2.00 from holding Pembina Pipeline Corp or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref Series vs. Pembina Pipeline Corp
Performance |
| Timeline |
| Enbridge Pref Series |
| Pembina Pipeline Corp |
Enbridge and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge and Pembina Pipeline
The main advantage of trading using opposite Enbridge and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.| Enbridge vs. Pembina Pipeline Corp | Enbridge vs. Emera Inc | Enbridge vs. Enbridge Pref 13 | Enbridge vs. Enbridge Pref 15 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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