Correlation Between Enbridge Pref and Laramide Resources
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By analyzing existing cross correlation between Enbridge Pref 5 and Laramide Resources, you can compare the effects of market volatilities on Enbridge Pref and Laramide Resources 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 Laramide Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Laramide Resources.
Diversification Opportunities for Enbridge Pref and Laramide Resources
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Enbridge and Laramide is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Laramide Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laramide Resources 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 Laramide Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laramide Resources has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Laramide Resources go up and down completely randomly.
Pair Corralation between Enbridge Pref and Laramide Resources
Assuming the 90 days trading horizon Enbridge Pref is expected to generate 1.88 times less return on investment than Laramide Resources. But when comparing it to its historical volatility, Enbridge Pref 5 is 7.38 times less risky than Laramide Resources. It trades about 0.11 of its potential returns per unit of risk. Laramide Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 67.00 in Laramide Resources on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Laramide Resources or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.79% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Laramide Resources
Performance |
| Timeline |
| Enbridge Pref 5 |
| Laramide Resources |
Enbridge Pref and Laramide Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Laramide Resources
The main advantage of trading using opposite Enbridge Pref and Laramide Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Laramide Resources 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 Laramide Resources will offset losses from the drop in Laramide Resources' 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 |
| Laramide Resources vs. Mega Uranium | Laramide Resources vs. Forsys Metals Corp | Laramide Resources vs. Pinetree Capital | Laramide Resources vs. Ur Energy |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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