Correlation Between Enbridge Pref and Pembina Pipeline
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref L and Pembina Pipeline Corp, you can compare the effects of market volatilities on Enbridge Pref and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Pembina Pipeline.
Diversification Opportunities for Enbridge Pref and Pembina Pipeline
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enbridge and Pembina is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Pembina Pipeline go up and down completely randomly.
Pair Corralation between Enbridge Pref and Pembina Pipeline
Assuming the 90 days trading horizon Enbridge Pref L is expected to generate 0.91 times more return on investment than Pembina Pipeline. However, Enbridge Pref L is 1.1 times less risky than Pembina Pipeline. It trades about 0.2 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about -0.04 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 | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Enbridge Pref L vs. Pembina Pipeline Corp
Performance |
| Timeline |
| Enbridge Pref L |
| Pembina Pipeline Corp |
Enbridge Pref and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Pembina Pipeline
The main advantage of trading using opposite Enbridge Pref and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline's long position.The idea behind Enbridge Pref L and Pembina Pipeline 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |