Correlation Between Enbridge Pref and High Arctic
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By analyzing existing cross correlation between Enbridge Pref 5 and High Arctic Energy, you can compare the effects of market volatilities on Enbridge Pref and High Arctic 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 High Arctic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and High Arctic.
Diversification Opportunities for Enbridge Pref and High Arctic
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and High is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and High Arctic Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Arctic Energy 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 High Arctic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Arctic Energy has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and High Arctic go up and down completely randomly.
Pair Corralation between Enbridge Pref and High Arctic
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 2.46 times less return on investment than High Arctic. But when comparing it to its historical volatility, Enbridge Pref 5 is 7.38 times less risky than High Arctic. It trades about 0.18 of its potential returns per unit of risk. High Arctic Energy is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 112.00 in High Arctic Energy on September 2, 2024 and sell it today you would earn a total of 3.00 from holding High Arctic Energy or generate 2.68% 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. High Arctic Energy
Performance |
| Timeline |
| Enbridge Pref 5 |
| High Arctic Energy |
Enbridge Pref and High Arctic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and High Arctic
The main advantage of trading using opposite Enbridge Pref and High Arctic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, High Arctic 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 High Arctic will offset losses from the drop in High Arctic'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 |
| High Arctic vs. CES Energy Solutions | High Arctic vs. Total Energy Services | High Arctic vs. PHX Energy Services |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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