Correlation Between Enbridge Pref and Pembina Pipeline
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By analyzing existing cross correlation between Enbridge Pref 5 and Pembina Pipeline Corp, you can compare the effects of market volatilities on Enbridge Pref and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Pembina Pipeline.
Diversification Opportunities for Enbridge Pref and Pembina Pipeline
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Pembina is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Pembina Pipeline go up and down completely randomly.
Pair Corralation between Enbridge Pref and Pembina Pipeline
Assuming the 90 days trading horizon Enbridge Pref 5 is expected to generate 2.06 times more return on investment than Pembina Pipeline. However, Enbridge Pref is 2.06 times more volatile than Pembina Pipeline Corp. It trades about 0.05 of its potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.05 per unit of risk. If you would invest 1,680 in Enbridge Pref 5 on September 4, 2024 and sell it today you would earn a total of 709.00 from holding Enbridge Pref 5 or generate 42.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Pembina Pipeline Corp
Performance |
| Timeline |
| Enbridge Pref 5 |
| Pembina Pipeline Corp |
Enbridge Pref and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Pembina Pipeline
The main advantage of trading using opposite Enbridge Pref and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline'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 |
| Pembina Pipeline vs. Arbor Metals Corp | Pembina Pipeline vs. Partners Value Investments | Pembina Pipeline vs. Faction Investment Group | Pembina Pipeline vs. Enerev5 Metals |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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