Correlation Between Enbridge Pref and CGX Energy
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By analyzing existing cross correlation between Enbridge Pref L and CGX Energy, you can compare the effects of market volatilities on Enbridge Pref and CGX 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 CGX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and CGX Energy.
Diversification Opportunities for Enbridge Pref and CGX Energy
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Enbridge and CGX is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and CGX Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGX 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 CGX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGX Energy has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and CGX Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and CGX Energy
Assuming the 90 days trading horizon Enbridge Pref L is expected to generate 0.24 times more return on investment than CGX Energy. However, Enbridge Pref L is 4.24 times less risky than CGX Energy. It trades about 0.04 of its potential returns per unit of risk. CGX Energy is currently generating about -0.05 per unit of risk. If you would invest 2,220 in Enbridge Pref L on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Enbridge Pref L or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Enbridge Pref L vs. CGX Energy
Performance |
| Timeline |
| Enbridge Pref L |
| CGX Energy |
Enbridge Pref and CGX Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and CGX Energy
The main advantage of trading using opposite Enbridge Pref and CGX Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, CGX 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 CGX Energy will offset losses from the drop in CGX Energy's long position.| Enbridge Pref vs. Enbridge Pref 5 | Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. E Split Corp | Enbridge Pref vs. E Split Corp |
| CGX Energy vs. Gear Energy | CGX Energy vs. Journey Energy | CGX Energy vs. Yangarra Resources | CGX Energy vs. Obsidian Energy |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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