Correlation Between Enbridge Pref and Baytex Energy
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By analyzing existing cross correlation between Enbridge Pref 5 and Baytex Energy Corp, you can compare the effects of market volatilities on Enbridge Pref and Baytex 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 Baytex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Baytex Energy.
Diversification Opportunities for Enbridge Pref and Baytex Energy
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Baytex is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Baytex Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baytex 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 5 are associated (or correlated) with Baytex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baytex Energy Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Baytex Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and Baytex Energy
Assuming the 90 days trading horizon Enbridge Pref 5 is expected to generate 0.13 times more return on investment than Baytex Energy. However, Enbridge Pref 5 is 7.72 times less risky than Baytex Energy. It trades about 0.31 of its potential returns per unit of risk. Baytex Energy Corp is currently generating about -0.08 per unit of risk. If you would invest 2,358 in Enbridge Pref 5 on November 25, 2024 and sell it today you would earn a total of 52.00 from holding Enbridge Pref 5 or generate 2.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Enbridge Pref 5 vs. Baytex Energy Corp
Performance |
Timeline |
Enbridge Pref 5 |
Baytex Energy Corp |
Enbridge Pref and Baytex Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enbridge Pref and Baytex Energy
The main advantage of trading using opposite Enbridge Pref and Baytex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Baytex 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 Baytex Energy will offset losses from the drop in Baytex Energy's long position.Enbridge Pref vs. Calian Technologies | ||
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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