Correlation Between Enbridge Pref and ARC Resources
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref 5 and ARC Resources, you can compare the effects of market volatilities on Enbridge Pref and ARC Resources 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 ARC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and ARC Resources.
Diversification Opportunities for Enbridge Pref and ARC Resources
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enbridge and ARC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and ARC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARC Resources 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 ARC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARC Resources has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and ARC Resources go up and down completely randomly.
Pair Corralation between Enbridge Pref and ARC Resources
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 12.61 times less return on investment than ARC Resources. But when comparing it to its historical volatility, Enbridge Pref 5 is 6.87 times less risky than ARC Resources. It trades about 0.09 of its potential returns per unit of risk. ARC Resources is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,313 in ARC Resources on September 5, 2024 and sell it today you would earn a total of 207.00 from holding ARC Resources or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 5 vs. ARC Resources
Performance |
| Timeline |
| Enbridge Pref 5 |
| ARC Resources |
Enbridge Pref and ARC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and ARC Resources
The main advantage of trading using opposite Enbridge Pref and ARC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, ARC Resources 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 ARC Resources will offset losses from the drop in ARC Resources' long position.| Enbridge Pref vs. 2028 Investment Grade | Enbridge Pref vs. CNJ Capital Investments | Enbridge Pref vs. Canaf Investments | Enbridge Pref vs. Vizsla Silver Corp |
| ARC Resources vs. Tourmaline Oil Corp | ARC Resources vs. Whitecap Resources | ARC Resources vs. MEG Energy Corp | ARC Resources vs. Vermilion 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |