Correlation Between Enbridge Pref and Jericho Oil
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By analyzing existing cross correlation between Enbridge Pref 5 and Jericho Oil Corp, you can compare the effects of market volatilities on Enbridge Pref and Jericho Oil 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 Jericho Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Jericho Oil.
Diversification Opportunities for Enbridge Pref and Jericho Oil
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enbridge and Jericho is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Jericho Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jericho Oil 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 Jericho Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jericho Oil Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Jericho Oil go up and down completely randomly.
Pair Corralation between Enbridge Pref and Jericho Oil
Assuming the 90 days trading horizon Enbridge Pref 5 is expected to generate 0.1 times more return on investment than Jericho Oil. However, Enbridge Pref 5 is 10.15 times less risky than Jericho Oil. It trades about 0.24 of its potential returns per unit of risk. Jericho Oil Corp is currently generating about 0.0 per unit of risk. If you would invest 2,229 in Enbridge Pref 5 on August 31, 2024 and sell it today you would earn a total of 161.00 from holding Enbridge Pref 5 or generate 7.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Jericho Oil Corp
Performance |
| Timeline |
| Enbridge Pref 5 |
| Jericho Oil Corp |
Enbridge Pref and Jericho Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Jericho Oil
The main advantage of trading using opposite Enbridge Pref and Jericho Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Jericho Oil 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 Jericho Oil will offset losses from the drop in Jericho Oil's long position.| Enbridge Pref vs. Enbridge Pref 11 | Enbridge Pref vs. Enbridge Pref L | Enbridge Pref vs. E Split Corp | Enbridge Pref vs. E Split Corp |
| Jericho Oil vs. Gen III Oil | Jericho Oil vs. Desert Mountain Energy | Jericho Oil vs. Jericho Oil Corp | Jericho Oil vs. Ngx Energy International |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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