Correlation Between Enbridge Pref and Touchstone Exploration
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By analyzing existing cross correlation between Enbridge Pref 5 and Touchstone Exploration, you can compare the effects of market volatilities on Enbridge Pref and Touchstone Exploration 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 Touchstone Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enbridge Pref and Touchstone Exploration.
Diversification Opportunities for Enbridge Pref and Touchstone Exploration
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enbridge and Touchstone is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Enbridge Pref 5 and Touchstone Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Exploration 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 Touchstone Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Exploration has no effect on the direction of Enbridge Pref i.e., Enbridge Pref and Touchstone Exploration go up and down completely randomly.
Pair Corralation between Enbridge Pref and Touchstone Exploration
Assuming the 90 days trading horizon Enbridge Pref 5 is expected to generate 0.09 times more return on investment than Touchstone Exploration. However, Enbridge Pref 5 is 10.58 times less risky than Touchstone Exploration. It trades about 0.18 of its potential returns per unit of risk. Touchstone Exploration is currently generating about -0.07 per unit of risk. If you would invest 2,363 in Enbridge Pref 5 on September 2, 2024 and sell it today you would earn a total of 32.00 from holding Enbridge Pref 5 or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enbridge Pref 5 vs. Touchstone Exploration
Performance |
| Timeline |
| Enbridge Pref 5 |
| Touchstone Exploration |
Enbridge Pref and Touchstone Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enbridge Pref and Touchstone Exploration
The main advantage of trading using opposite Enbridge Pref and Touchstone Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enbridge Pref position performs unexpectedly, Touchstone Exploration 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 Touchstone Exploration will offset losses from the drop in Touchstone Exploration's 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 |
| Touchstone Exploration vs. Headwater Exploration | Touchstone Exploration vs. Gear Energy | Touchstone Exploration vs. Canacol Energy | Touchstone Exploration 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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