Correlation Between Enbridge Pref and Obsidian Energy
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By analyzing existing cross correlation between Enbridge Pref 5 and Obsidian Energy, you can compare the effects of market volatilities on Enbridge Pref and Obsidian Energy 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 Obsidian Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Obsidian Energy.
Diversification Opportunities for Enbridge Pref and Obsidian Energy
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enbridge and Obsidian is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Obsidian Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Obsidian 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 Obsidian Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Obsidian Energy has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Obsidian Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and Obsidian Energy
Assuming the 90 days trading horizon Enbridge Pref 5 is expected to generate 0.16 times more return on investment than Obsidian Energy. However, Enbridge Pref 5 is 6.14 times less risky than Obsidian Energy. It trades about 0.19 of its potential returns per unit of risk. Obsidian Energy is currently generating about -0.14 per unit of risk. If you would invest 2,359 in Enbridge Pref 5 on November 18, 2024 and sell it today you would earn a total of 36.00 from holding Enbridge Pref 5 or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Obsidian Energy
Performance |
| Timeline |
| Enbridge Pref 5 |
| Obsidian Energy |
Enbridge Pref and Obsidian Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Obsidian Energy
The main advantage of trading using opposite Enbridge Pref and Obsidian Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Obsidian Energy 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 Obsidian Energy will offset losses from the drop in Obsidian Energy's long position.| Enbridge Pref vs. Canadian Utilities Limited | Enbridge Pref vs. Algonquin Power Utilities | Enbridge Pref vs. Primaris Retail RE | Enbridge Pref vs. XXIX Metal Corp |
| Obsidian Energy vs. Bonterra Energy Corp | Obsidian Energy vs. Cardinal Energy | Obsidian Energy vs. Surge Energy | Obsidian Energy vs. InPlay Oil 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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