Correlation Between Enbridge Pref and International Petroleum
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By analyzing existing cross correlation between Enbridge Pref L and International Petroleum Corp, you can compare the effects of market volatilities on Enbridge Pref and International Petroleum 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 International Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and International Petroleum.
Diversification Opportunities for Enbridge Pref and International Petroleum
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enbridge and International is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and International Petroleum Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Petroleum 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 International Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Petroleum has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and International Petroleum go up and down completely randomly.
Pair Corralation between Enbridge Pref and International Petroleum
Assuming the 90 days trading horizon Enbridge Pref L is expected to generate 0.24 times more return on investment than International Petroleum. However, Enbridge Pref L is 4.23 times less risky than International Petroleum. It trades about 0.15 of its potential returns per unit of risk. International Petroleum Corp is currently generating about 0.02 per unit of risk. If you would invest 2,031 in Enbridge Pref L on November 28, 2024 and sell it today you would earn a total of 217.00 from holding Enbridge Pref L or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref L vs. International Petroleum Corp
Performance |
| Timeline |
| Enbridge Pref L |
| International Petroleum |
Enbridge Pref and International Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and International Petroleum
The main advantage of trading using opposite Enbridge Pref and International Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, International Petroleum 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 International Petroleum will offset losses from the drop in International Petroleum's long position.| Enbridge Pref vs. Network Media Group | Enbridge Pref vs. South Pacific Metals | Enbridge Pref vs. Sun Peak Metals | Enbridge Pref vs. Primaris Retail RE |
| International Petroleum vs. Topaz Energy Corp | International Petroleum vs. Spartan Delta Corp | International Petroleum vs. Africa Oil Corp | International Petroleum vs. Headwater Exploration |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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