Correlation Between Enbridge Pref and Cogeco Communications
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By analyzing existing cross correlation between Enbridge Pref L and Cogeco Communications, you can compare the effects of market volatilities on Enbridge Pref and Cogeco Communications 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 Cogeco Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Cogeco Communications.
Diversification Opportunities for Enbridge Pref and Cogeco Communications
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enbridge and Cogeco is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and Cogeco Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogeco Communications 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 Cogeco Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogeco Communications has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Cogeco Communications go up and down completely randomly.
Pair Corralation between Enbridge Pref and Cogeco Communications
Assuming the 90 days trading horizon Enbridge Pref L is expected to generate 0.52 times more return on investment than Cogeco Communications. However, Enbridge Pref L is 1.94 times less risky than Cogeco Communications. It trades about 0.07 of its potential returns per unit of risk. Cogeco Communications is currently generating about 0.0 per unit of risk. If you would invest 1,763 in Enbridge Pref L on November 2, 2024 and sell it today you would earn a total of 504.00 from holding Enbridge Pref L or generate 28.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref L vs. Cogeco Communications
Performance |
| Timeline |
| Enbridge Pref L |
| Cogeco Communications |
Enbridge Pref and Cogeco Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Cogeco Communications
The main advantage of trading using opposite Enbridge Pref and Cogeco Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Cogeco Communications 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 Cogeco Communications will offset losses from the drop in Cogeco Communications' long position.| Enbridge Pref vs. Westshore Terminals Investment | Enbridge Pref vs. Champion Iron | Enbridge Pref vs. Western Investment | Enbridge Pref vs. Solid Impact Investments |
| Cogeco Communications vs. Cogeco Inc | Cogeco Communications vs. Quebecor | Cogeco Communications vs. Transcontinental | Cogeco Communications vs. Stella Jones |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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