Correlation Between Enbridge and IShares Canadian
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By analyzing existing cross correlation between Enbridge Pref Series and iShares Canadian HYBrid, you can compare the effects of market volatilities on Enbridge and IShares Canadian 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 IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge and IShares Canadian.
Diversification Opportunities for Enbridge and IShares Canadian
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enbridge and IShares is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref Series and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid 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 IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of Enbridge i.e., Enbridge and IShares Canadian go up and down completely randomly.
Pair Corralation between Enbridge and IShares Canadian
Assuming the 90 days trading horizon Enbridge Pref Series is expected to under-perform the IShares Canadian. In addition to that, Enbridge is 2.02 times more volatile than iShares Canadian HYBrid. It trades about -0.06 of its total potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.04 per unit of volatility. If you would invest 1,986 in iShares Canadian HYBrid on December 10, 2024 and sell it today you would earn a total of 6.00 from holding iShares Canadian HYBrid or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref Series vs. iShares Canadian HYBrid
Performance |
| Timeline |
| Enbridge Pref Series |
| iShares Canadian HYBrid |
Enbridge and IShares Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge and IShares Canadian
The main advantage of trading using opposite Enbridge and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge position performs unexpectedly, IShares Canadian 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 IShares Canadian will offset losses from the drop in IShares Canadian's long position.| Enbridge vs. Pembina Pipeline Corp | Enbridge vs. Emera Inc | Enbridge vs. Enbridge Pref 13 | Enbridge vs. Enbridge Pref 15 |
| IShares Canadian vs. iShares IG Corporate | IShares Canadian vs. iShares High Yield | IShares Canadian vs. iShares Floating Rate | IShares Canadian vs. iShares JP Morgan |
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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