Correlation Between Enbridge Pref and Economic Investment
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By analyzing existing cross correlation between Enbridge Pref 5 and Economic Investment Trust, you can compare the effects of market volatilities on Enbridge Pref and Economic Investment 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 Economic Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Economic Investment.
Diversification Opportunities for Enbridge Pref and Economic Investment
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enbridge and Economic is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Economic Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Economic Investment Trust 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 Economic Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Economic Investment Trust has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Economic Investment go up and down completely randomly.
Pair Corralation between Enbridge Pref and Economic Investment
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 2.71 times less return on investment than Economic Investment. But when comparing it to its historical volatility, Enbridge Pref 5 is 1.46 times less risky than Economic Investment. It trades about 0.18 of its potential returns per unit of risk. Economic Investment Trust is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 16,826 in Economic Investment Trust on September 2, 2024 and sell it today you would earn a total of 624.00 from holding Economic Investment Trust or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Economic Investment Trust
Performance |
| Timeline |
| Enbridge Pref 5 |
| Economic Investment Trust |
Enbridge Pref and Economic Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Economic Investment
The main advantage of trading using opposite Enbridge Pref and Economic Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Economic Investment 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 Economic Investment will offset losses from the drop in Economic Investment's long position.| Enbridge Pref vs. UnitedHealth Group CDR | Enbridge Pref vs. Northstar Clean Technologies | Enbridge Pref vs. Exco Technologies Limited | Enbridge Pref vs. Oculus VisionTech |
| Economic Investment vs. Enbridge Pref 5 | Economic Investment vs. Enbridge Pref 11 | Economic Investment vs. Enbridge Pref L | Economic Investment vs. E Split Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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