Correlation Between Enbridge Pref and Accelerate Canadian
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By analyzing existing cross correlation between Enbridge Pref L and Accelerate Canadian Long, you can compare the effects of market volatilities on Enbridge Pref and Accelerate 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 Pref with a short position of Accelerate Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Accelerate Canadian.
Diversification Opportunities for Enbridge Pref and Accelerate Canadian
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enbridge and Accelerate is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and Accelerate Canadian Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Canadian Long 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 Accelerate Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Canadian Long has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Accelerate Canadian go up and down completely randomly.
Pair Corralation between Enbridge Pref and Accelerate Canadian
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 7.82 times less return on investment than Accelerate Canadian. In addition to that, Enbridge Pref is 1.09 times more volatile than Accelerate Canadian Long. It trades about 0.02 of its total potential returns per unit of risk. Accelerate Canadian Long is currently generating about 0.16 per unit of volatility. If you would invest 2,606 in Accelerate Canadian Long on September 13, 2024 and sell it today you would earn a total of 115.00 from holding Accelerate Canadian Long or generate 4.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Enbridge Pref L vs. Accelerate Canadian Long
Performance |
| Timeline |
| Enbridge Pref L |
| Accelerate Canadian Long |
Enbridge Pref and Accelerate Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Accelerate Canadian
The main advantage of trading using opposite Enbridge Pref and Accelerate Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Accelerate 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 Accelerate Canadian will offset losses from the drop in Accelerate Canadian's long position.| Enbridge Pref vs. Enbridge Pref 5 | Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. E Split Corp | Enbridge Pref vs. E Split Corp |
| Accelerate Canadian vs. Accelerate Absolute Return | Accelerate Canadian vs. Accelerate Arbitrage | Accelerate Canadian vs. Accelerate OneChoice Alternative | Accelerate Canadian vs. First Trust AlphaDEX |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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