Correlation Between Enbridge Pref and E Split
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enbridge Pref 5 and E Split Corp, you can compare the effects of market volatilities on Enbridge Pref and E Split 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 E Split. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and E Split.
Diversification Opportunities for Enbridge Pref and E Split
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enbridge and ENS-PA is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and E Split Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Split 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 E Split. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Split Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and E Split go up and down completely randomly.
Pair Corralation between Enbridge Pref and E Split
Assuming the 90 days trading horizon Enbridge Pref 5 is expected to generate 4.54 times more return on investment than E Split. However, Enbridge Pref is 4.54 times more volatile than E Split Corp. It trades about 0.04 of its potential returns per unit of risk. E Split Corp is currently generating about 0.11 per unit of risk. If you would invest 1,727 in Enbridge Pref 5 on August 27, 2024 and sell it today you would earn a total of 673.00 from holding Enbridge Pref 5 or generate 38.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.99% |
| Values | Daily Returns |
Enbridge Pref 5 vs. E Split Corp
Performance |
| Timeline |
| Enbridge Pref 5 |
| E Split Corp |
Enbridge Pref and E Split Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and E Split
The main advantage of trading using opposite Enbridge Pref and E Split positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, E Split 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 E Split will offset losses from the drop in E Split's long position.| Enbridge Pref vs. Northstar Clean Technologies | Enbridge Pref vs. Bird Construction | Enbridge Pref vs. Sparx Technology | Enbridge Pref vs. Xtract One Technologies |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |