Correlation Between Enbridge Pref and Altagas
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref 5 and Altagas Ltd Pref, you can compare the effects of market volatilities on Enbridge Pref and Altagas 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 Altagas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Altagas.
Diversification Opportunities for Enbridge Pref and Altagas
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Altagas is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Altagas Ltd Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Pref 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 5 are associated (or correlated) with Altagas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Pref has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Altagas go up and down completely randomly.
Pair Corralation between Enbridge Pref and Altagas
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 1.03 times less return on investment than Altagas. But when comparing it to its historical volatility, Enbridge Pref 5 is 1.71 times less risky than Altagas. It trades about 0.23 of its potential returns per unit of risk. Altagas Ltd Pref is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,258 in Altagas Ltd Pref on August 28, 2024 and sell it today you would earn a total of 41.00 from holding Altagas Ltd Pref or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Altagas Ltd Pref
Performance |
| Timeline |
| Enbridge Pref 5 |
| Altagas Pref |
Enbridge Pref and Altagas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Altagas
The main advantage of trading using opposite Enbridge Pref and Altagas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Altagas 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 Altagas will offset losses from the drop in Altagas' long position.The idea behind Enbridge Pref 5 and Altagas Ltd Pref 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |