Correlation Between Enbridge Pref and Jura Energy
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By analyzing existing cross correlation between Enbridge Pref L and Jura Energy, you can compare the effects of market volatilities on Enbridge Pref and Jura 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 Jura Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Jura Energy.
Diversification Opportunities for Enbridge Pref and Jura Energy
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Jura is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and Jura Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jura Energy 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 Jura Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jura Energy has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Jura Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and Jura Energy
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 9.05 times less return on investment than Jura Energy. But when comparing it to its historical volatility, Enbridge Pref L is 15.51 times less risky than Jura Energy. It trades about 0.07 of its potential returns per unit of risk. Jura Energy is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Jura Energy on August 30, 2024 and sell it today you would lose (3.00) from holding Jura Energy or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Enbridge Pref L vs. Jura Energy
Performance |
| Timeline |
| Enbridge Pref L |
| Jura Energy |
Enbridge Pref and Jura Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Jura Energy
The main advantage of trading using opposite Enbridge Pref and Jura Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Jura 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 Jura Energy will offset losses from the drop in Jura Energy's long position.The idea behind Enbridge Pref L and Jura Energy 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.| Jura Energy vs. Timbercreek Financial Corp | Jura Energy vs. Renoworks Software | Jura Energy vs. Toronto Dominion Bank | Jura Energy vs. Wilmington Capital Management |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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