Correlation Between Enbridge Pref and Baselode Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref L and Baselode Energy Corp, you can compare the effects of market volatilities on Enbridge Pref and Baselode Energy 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 Baselode Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Baselode Energy.
Diversification Opportunities for Enbridge Pref and Baselode Energy
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Baselode is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and Baselode Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baselode Energy 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 Baselode Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baselode Energy Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Baselode Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and Baselode Energy
Assuming the 90 days trading horizon Enbridge Pref L is expected to generate 0.14 times more return on investment than Baselode Energy. However, Enbridge Pref L is 6.96 times less risky than Baselode Energy. It trades about 0.2 of its potential returns per unit of risk. Baselode Energy Corp is currently generating about -0.26 per unit of risk. If you would invest 2,181 in Enbridge Pref L on September 1, 2024 and sell it today you would earn a total of 65.00 from holding Enbridge Pref L or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Enbridge Pref L vs. Baselode Energy Corp
Performance |
| Timeline |
| Enbridge Pref L |
| Baselode Energy Corp |
Enbridge Pref and Baselode Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Baselode Energy
The main advantage of trading using opposite Enbridge Pref and Baselode Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Baselode Energy 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 Baselode Energy will offset losses from the drop in Baselode Energy's long position.The idea behind Enbridge Pref L and Baselode Energy Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Baselode Energy vs. MTY Food Group | Baselode Energy vs. Definity Financial Corp | Baselode Energy vs. CI Financial Corp | Baselode Energy vs. Renoworks Software |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |