Correlation Between Enbridge Pref and InPlay Oil
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref L and InPlay Oil Corp, you can compare the effects of market volatilities on Enbridge Pref and InPlay Oil 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 InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and InPlay Oil.
Diversification Opportunities for Enbridge Pref and InPlay Oil
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and InPlay is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil 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 InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and InPlay Oil go up and down completely randomly.
Pair Corralation between Enbridge Pref and InPlay Oil
Assuming the 90 days trading horizon Enbridge Pref L is expected to generate 0.41 times more return on investment than InPlay Oil. However, Enbridge Pref L is 2.46 times less risky than InPlay Oil. It trades about 0.11 of its potential returns per unit of risk. InPlay Oil Corp is currently generating about -0.05 per unit of risk. If you would invest 1,956 in Enbridge Pref L on September 1, 2024 and sell it today you would earn a total of 290.00 from holding Enbridge Pref L or generate 14.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Enbridge Pref L vs. InPlay Oil Corp
Performance |
| Timeline |
| Enbridge Pref L |
| InPlay Oil Corp |
Enbridge Pref and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and InPlay Oil
The main advantage of trading using opposite Enbridge Pref and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil's long position.The idea behind Enbridge Pref L and InPlay Oil 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.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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |