Correlation Between Enbridge Pref and Denison Mines
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By analyzing existing cross correlation between Enbridge Pref 5 and Denison Mines Corp, you can compare the effects of market volatilities on Enbridge Pref and Denison Mines 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 Denison Mines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Denison Mines.
Diversification Opportunities for Enbridge Pref and Denison Mines
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Enbridge and Denison is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Denison Mines Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Denison Mines 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 Denison Mines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Denison Mines Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Denison Mines go up and down completely randomly.
Pair Corralation between Enbridge Pref and Denison Mines
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 2.3 times less return on investment than Denison Mines. But when comparing it to its historical volatility, Enbridge Pref 5 is 1.48 times less risky than Denison Mines. It trades about 0.04 of its potential returns per unit of risk. Denison Mines Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 152.00 in Denison Mines Corp on August 25, 2024 and sell it today you would earn a total of 180.00 from holding Denison Mines Corp or generate 118.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.99% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Denison Mines Corp
Performance |
| Timeline |
| Enbridge Pref 5 |
| Denison Mines Corp |
Enbridge Pref and Denison Mines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Denison Mines
The main advantage of trading using opposite Enbridge Pref and Denison Mines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Denison Mines 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 Denison Mines will offset losses from the drop in Denison Mines' long position.| Enbridge Pref vs. East Side Games | Enbridge Pref vs. Leons Furniture Limited | Enbridge Pref vs. AGF Management Limited | Enbridge Pref vs. Highwood Asset Management |
| Denison Mines vs. Baselode Energy Corp | Denison Mines vs. Standard Uranium | Denison Mines vs. Skyharbour Resources | Denison Mines vs. iShares Canadian HYBrid |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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