Correlation Between Enbridge Pref and Orca Energy
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By analyzing existing cross correlation between Enbridge Pref 5 and Orca Energy Group, you can compare the effects of market volatilities on Enbridge Pref and Orca 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 Orca Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Orca Energy.
Diversification Opportunities for Enbridge Pref and Orca Energy
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enbridge and Orca is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Orca Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orca Energy Group 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 Orca Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orca Energy Group has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Orca Energy go up and down completely randomly.
Pair Corralation between Enbridge Pref and Orca Energy
Assuming the 90 days trading horizon Enbridge Pref 5 is expected to generate 0.24 times more return on investment than Orca Energy. However, Enbridge Pref 5 is 4.17 times less risky than Orca Energy. It trades about 0.11 of its potential returns per unit of risk. Orca Energy Group is currently generating about -0.03 per unit of risk. If you would invest 2,044 in Enbridge Pref 5 on September 4, 2024 and sell it today you would earn a total of 346.00 from holding Enbridge Pref 5 or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Orca Energy Group
Performance |
| Timeline |
| Enbridge Pref 5 |
| Orca Energy Group |
Enbridge Pref and Orca Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Orca Energy
The main advantage of trading using opposite Enbridge Pref and Orca Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Orca 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 Orca Energy will offset losses from the drop in Orca Energy's long position.| Enbridge Pref vs. Caribbean Utilities | Enbridge Pref vs. Chemtrade Logistics Income | Enbridge Pref vs. Bip Investment Corp | Enbridge Pref vs. Atrium Mortgage Investment |
| Orca Energy vs. Alvopetro Energy | Orca Energy vs. Hemisphere Energy | Orca Energy vs. Canacol Energy | Orca Energy vs. Source Rock Royalties |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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