Correlation Between Enbridge Pref and TC Energy
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By analyzing existing cross correlation between Enbridge Pref L and TC Energy Corp, you can compare the effects of market volatilities on Enbridge Pref and TC 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 TC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and TC Energy.
Diversification Opportunities for Enbridge Pref and TC Energy
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enbridge and TRP-PF is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref L and TC Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Energy 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 TC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Energy Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and TC Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and TC Energy
Assuming the 90 days trading horizon Enbridge Pref L is expected to under-perform the TC Energy. But the preferred stock apears to be less risky and, when comparing its historical volatility, Enbridge Pref L is 1.8 times less risky than TC Energy. The preferred stock trades about -0.01 of its potential returns per unit of risk. The TC Energy Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,779 in TC Energy Corp on October 12, 2024 and sell it today you would earn a total of 21.00 from holding TC Energy Corp or generate 1.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Enbridge Pref L vs. TC Energy Corp
Performance |
Timeline |
Enbridge Pref L |
TC Energy Corp |
Enbridge Pref and TC Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enbridge Pref and TC Energy
The main advantage of trading using opposite Enbridge Pref and TC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, TC 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 TC Energy will offset losses from the drop in TC Energy's long position.Enbridge Pref vs. Questor Technology | Enbridge Pref vs. Element Fleet Management | Enbridge Pref vs. Leveljump Healthcare Corp | Enbridge Pref vs. Andlauer Healthcare Gr |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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