Correlation Between Enbridge Pref and Canuc Resources
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By analyzing existing cross correlation between Enbridge Pref 5 and Canuc Resources Corp, you can compare the effects of market volatilities on Enbridge Pref and Canuc 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 Canuc Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Canuc Resources.
Diversification Opportunities for Enbridge Pref and Canuc Resources
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Canuc is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Canuc Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canuc Resources 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 Canuc Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canuc Resources Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Canuc Resources go up and down completely randomly.
Pair Corralation between Enbridge Pref and Canuc Resources
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 9.36 times less return on investment than Canuc Resources. But when comparing it to its historical volatility, Enbridge Pref 5 is 10.15 times less risky than Canuc Resources. It trades about 0.23 of its potential returns per unit of risk. Canuc Resources Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Canuc Resources Corp on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Canuc Resources Corp or generate 16.67% 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. Canuc Resources Corp
Performance |
| Timeline |
| Enbridge Pref 5 |
| Canuc Resources Corp |
Enbridge Pref and Canuc Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Canuc Resources
The main advantage of trading using opposite Enbridge Pref and Canuc Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Canuc 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 Canuc Resources will offset losses from the drop in Canuc Resources' long position.The idea behind Enbridge Pref 5 and Canuc Resources Corp 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.| Canuc Resources vs. iSign Media Solutions | Canuc Resources vs. Mako Mining Corp | Canuc Resources vs. Nicola Mining | Canuc Resources vs. Storage Vault Canada |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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