Correlation Between Enbridge Pref and CHEVRON CDR
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By analyzing existing cross correlation between Enbridge Pref L and CHEVRON CDR, you can compare the effects of market volatilities on Enbridge Pref and CHEVRON CDR 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 CHEVRON CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and CHEVRON CDR.
Diversification Opportunities for Enbridge Pref and CHEVRON CDR
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enbridge and CHEVRON is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and CHEVRON CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEVRON CDR 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 CHEVRON CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEVRON CDR has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and CHEVRON CDR go up and down completely randomly.
Pair Corralation between Enbridge Pref and CHEVRON CDR
Assuming the 90 days trading horizon Enbridge Pref L is expected to generate 0.53 times more return on investment than CHEVRON CDR. However, Enbridge Pref L is 1.87 times less risky than CHEVRON CDR. It trades about 0.1 of its potential returns per unit of risk. CHEVRON CDR is currently generating about 0.04 per unit of risk. If you would invest 2,039 in Enbridge Pref L on August 25, 2024 and sell it today you would earn a total of 179.00 from holding Enbridge Pref L or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Enbridge Pref L vs. CHEVRON CDR
Performance |
| Timeline |
| Enbridge Pref L |
| CHEVRON CDR |
Enbridge Pref and CHEVRON CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and CHEVRON CDR
The main advantage of trading using opposite Enbridge Pref and CHEVRON CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, CHEVRON CDR 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 CHEVRON CDR will offset losses from the drop in CHEVRON CDR's long position.| Enbridge Pref vs. Element Fleet Management | Enbridge Pref vs. Bragg Gaming Group | Enbridge Pref vs. Data Communications Management | Enbridge Pref vs. Western Copper and |
| CHEVRON CDR vs. Enbridge Pref 5 | CHEVRON CDR vs. Enbridge Pref 11 | CHEVRON CDR vs. Enbridge Pref L | CHEVRON CDR vs. E Split 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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