Correlation Between Enbridge Pref and Africa Oil
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By analyzing existing cross correlation between Enbridge Pref L and Africa Oil Corp, you can compare the effects of market volatilities on Enbridge Pref and Africa Oil 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 Africa Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Africa Oil.
Diversification Opportunities for Enbridge Pref and Africa Oil
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Africa is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and Africa Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Africa Oil Corp 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 L are associated (or correlated) with Africa Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Africa Oil Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Africa Oil go up and down completely randomly.
Pair Corralation between Enbridge Pref and Africa Oil
Assuming the 90 days trading horizon Enbridge Pref L is expected to under-perform the Africa Oil. But the preferred stock apears to be less risky and, when comparing its historical volatility, Enbridge Pref L is 3.79 times less risky than Africa Oil. The preferred stock trades about -0.01 of its potential returns per unit of risk. The Africa Oil Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 178.00 in Africa Oil Corp on August 26, 2024 and sell it today you would earn a total of 29.00 from holding Africa Oil Corp or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Enbridge Pref L vs. Africa Oil Corp
Performance |
| Timeline |
| Enbridge Pref L |
| Africa Oil Corp |
Enbridge Pref and Africa Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Africa Oil
The main advantage of trading using opposite Enbridge Pref and Africa Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Africa Oil 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 Africa Oil will offset losses from the drop in Africa Oil's long position.| Enbridge Pref vs. CVW CleanTech | Enbridge Pref vs. Element Fleet Management | Enbridge Pref vs. Data Communications Management | Enbridge Pref vs. Highwood Asset Management |
| Africa Oil vs. Gear Energy | Africa Oil vs. Journey Energy | Africa Oil vs. Headwater Exploration | Africa Oil vs. Frontera Energy 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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