Correlation Between Enbridge Pref and Accelerate Canadian
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By analyzing existing cross correlation between Enbridge Pref 5 and Accelerate Canadian Long, you can compare the effects of market volatilities on Enbridge Pref and Accelerate Canadian 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 Accelerate Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Accelerate Canadian.
Diversification Opportunities for Enbridge Pref and Accelerate Canadian
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enbridge and Accelerate is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Accelerate Canadian Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Canadian Long 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 Accelerate Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Canadian Long has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Accelerate Canadian go up and down completely randomly.
Pair Corralation between Enbridge Pref and Accelerate Canadian
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 2.81 times less return on investment than Accelerate Canadian. But when comparing it to its historical volatility, Enbridge Pref 5 is 1.86 times less risky than Accelerate Canadian. It trades about 0.23 of its potential returns per unit of risk. Accelerate Canadian Long is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 2,559 in Accelerate Canadian Long on August 29, 2024 and sell it today you would earn a total of 130.00 from holding Accelerate Canadian Long or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Accelerate Canadian Long
Performance |
| Timeline |
| Enbridge Pref 5 |
| Accelerate Canadian Long |
Enbridge Pref and Accelerate Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Accelerate Canadian
The main advantage of trading using opposite Enbridge Pref and Accelerate Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Accelerate Canadian 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 Accelerate Canadian will offset losses from the drop in Accelerate Canadian's long position.The idea behind Enbridge Pref 5 and Accelerate Canadian Long 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.| Accelerate Canadian vs. Trican Well Service | Accelerate Canadian vs. Ensign Energy Services | Accelerate Canadian vs. Calfrac Well Services | Accelerate Canadian vs. Birchcliff 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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